Not in the traditional sense I'd say. The next jump will be super close to photorealistic, and then the jump after that will be photorealism (maybe distinguishable from real life in motion). However, there's still a long way to go with immersing the player, making them feel like they're in the world. I think shit like Oculus rift is going to be a big part of future jumps, maybe not what that product does specifically, but the principle. 

I think a lot of people under-estimated the leap. We aren't getting that massive resolution bump like from ps2 to ps3, but particle effects, physics and complexity are taking just as big a leap as any other before.

most of them are nintendo supporters.

Yeah, that's CG, off-line rendered via V-Ray. Guy who made it is... I guess to say he's talented is major underestimation. Will that be possible in 10 years via cloud streaming - not so sure, but I hope we'll get close enough.

I agree and its even more awesome how good Tools of Destruction looks when you think about the fact that it runs in SD resolution.
The native rendering resolution for this game is 960x704.  

And Knack looks so good because its close ups and cinematic camera angles (not that the game looks shitty otherwhise I just say that the 2 mentioned things always help to make games look better)

Since PS2 the gap between is becoming smaller. While PS2 to PS3 still showed significant improvement, PS3 to PS4(and Xbone too) is a much smaller improvement. I wonder when a new generation isn't going to show any improvement at all.

These kinds of comparisons are difficult to gauge properly in such a video due to all of the variables involved.  Depending on what games are chosen to be compared or, as someone else mentioned, if emulators are used, it can skew the results.  The true comparison is to view the results in person and while the PS4, as of right now, isn't comparable by this metric, the biggest leap IMHO is easily between the PS1 and PS2. 

The PS1 was incredibly rough around the edges regarding 3D graphics and really didn't age very well.  Comparing launch window PS1 games like GameDay, Madden or Battle Arena Toshinden to launch-Madden or TTT on PS2 is a mammoth leap – not just via screenshots, but especially in motion.

PS2 fixed a lot of the big problems and flaws (very blocky poly models, pixilation, etc) that were unavoidably present on PS1, whereas the PS3 mostly made improvements.  It's not that the technical leap isn't there – it is – but the perceptive leap isn't as large to me.  The gap between PS2 and PS3, while certainly noticeable, is not as profound, and I certainly don't expect as big of a perceptive leap between PS3 and PS4 either.

true but the gap from kz2 to kzSF was huge.  there are a lot more graphics we can improve in but it will certainly help some artistic directions more than others.  the very cartoony feel that R&C and knack fit into is probably the worst genre to show off graphics moving forward. 

but yeah, we're going to hit a wall.  not because we can't improve but because we won't care to look at them.  i don't want my games to be just too hyper realistic.  i play games to escape so there should be a nice gloss of "better than life" for the things i want to play.

I still remember playing Silent Hill 2 and Winning eleven 7 for the first time on my PS2. Couldn't believe how real they looked.

The gap between Metal Gear Solid for the PS1 and MGS2 for PS2, blew my mind.

Same reason he chose GT1 instead of GT2, GTA1 instead of GTA 2, FF7 instead of FF8 or FF9.