A lot of hype, but surely higher HW power plus new techs (or sensibly enhanced and made affordable old ones, like VR) will make many new things possible and even more old ones enhanced.

Not to mention. To do all this, would basically mean our PC's can render Avatar, in real time. You're not getting realtime muscles, bones, clothing, and calculating all that easily. This is why a 10 second shot, in a movie. Can take 6 months of work.

It is true solving the initial first hurdles will be very expensive, however it will become cheaper as time goes on and "asset-bank" grows bigger. It will also require tremendous computing power but these past generations, all this new computing power has been put to visible shinier graphics instead of sub-systems and what's beneath the seeing eyes. Graphics will soon reach REAL diminishing returns and then developers will instead see more beneficial to use bigger part of computing resources to be used in sub-systems. The BIG thing is, once you get at least moderate physics running in-game then a lot of stuff can be done with minimal work, the physics-engine will do majority of the work, work that is done today manually so that the game would not crash, break and be a total glitchfest. Texture workload should become lesser and lesser as time goes on. Gaming will evolve no matter what and personally I cannot wait for the time when players can actually (for real) interact in games.