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Photorealism is good for some games and bad for others. Generally, if photorealism is the goal, the closer the better. Photorealism however does not negate the need for good art design. That Cyberpunk tech demo is kinda ugly imo. The lighting is way too flat, the colors are too muted and generally the world looks visually boring. That isn't a problem with photorealism, it's an issue with the art design imo.