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Usually the most "cutting edge" graphics on a Nintendo system will be from a 3rd party developer.  Nintendo usually uses a more cartoony art style that tends to be timeless.  I.e. the art is it not cutting edge, but if you are a retro gamer Nintendo games will be the best looking games on the system 10+ years from now.  For example, Mike Tyson's Punch Out now looks like a very impressive game compared to other NES games today.  On the other hand, Contra, Ninja Turtles, and Double Dragon on NES don't look nearly as good anymore.  Most Mario games still look pretty good IMHO, but if you compare the latest Mario game to the most cutting edge looking games today, then Mario won't measure up.

Nintendo is going for a timeless look instead of a cutting edge look.