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It's complicated. Advancements in video game technology have allowed a lot of cool things: the physics engine in Half-Life 2, the asymmetrical multiplayer experience in Demon's Souls, the spherical platforming engine in Super Mario Galaxy. A lot of those things were made possible by more sophisticated "graphics."

Conversely, glossy graphics and robust game engines can't magically make a bad game into a good game. But good level design, interesting mechanics, and engaging gameplay scenarios can mitigate poor performance. For example, I'd rather play Banjo-Tooie with its frequent frame rate dips than something like Flower, which runs at 1080p and 60 FPS.

So, graphics are somewhat important to me.