Yeah that's true.
And there's false misconception that better graphics =/= more realistic graphics. You can have better graphics and it will improve a games look, even with more stylized designs. Take Nintendo, hypothetically, if they decided to go power route for next gen for Switch 2.. you could have Mario running around in 4K with ray-tracing and it would look stunning.
Nintendo will make 4k games once I get a 4k tv. So 2025.