And this is one of the problems microsoft and Sony will have if they don't have next gen exclusives within the first year. A very slow uptick driven by only hardware enthusiasts (like Pro and X1X) Its looking like MS won't have any series X exclsuives based on their words so the ball is really in Sony's court.

When they showed it off, I didn't feel it, as the streaming quality was not quite optimal... When I got my hands on it it felt instantly that I plopped into next-gen. It was simply miles ahead of anything I had seen on the PS3 and the same is true for Ryse. I'm pretty much certain that's how we will feel when we get the first next-gen games as well. There are plenty of things to be improved technically and stylistically

And then there are the non-graphical aspects. Man, I used to be impressed by the crowds in Dead Rising on the 360. Then we had AC: Unity for the PS4/One. Can't wait what they will do on next-gen systems :D

Yes, but graphics do add up to making a better game. Processor limitations did come into play this generation, that's a fact. But man I remember booting up The Order 1886 and my jaws dropped. I know that not many people loved or even liked that game, but it blew me out of the water. I think gen 9 will actually be the generation where the lack of loading time, physics, and AI evolution will bring a whole lot to the table. 

Oh, and let's not forget that generation 8 was pretty heavy on how multiplayer evolved in games and how we consume them. It's not a very visible leap, but a leap none the less. 

Please sir, I want some more frames.

Frame rates are more important to me than PP effects and crazy resolutions. Games that look good but run like shit are meaningless. Interaction and living environments are more of a priority for me though, not much has happened in the last decade or so and no one seems to be really trying to improve this. Not to mention AI, it's high time that AI got a serious upgrade, most developers still rely on purely mechanical adjustments for difficulty. So I suppose my answer to the OP's question would be; a bit but less than certain other factors. I still like to be dazzled though, I remember being amazed at Uncharted 4 on my new TV, gorgeous level design and environments and fantastic lighting with HDR enabled.

Yes, but relative to what the device is trying to achieve. For example, what we got with the Switch is great for a hybrid system. PS5 and XSX I expect much more however.

The biggest leap in graphics has yet to come with full ray tracing and the next gen consoles won't be up for it. Next gen won't be a big difference but the gen after that will be. The faked photorealism we'll get next gen will look like a joke against full RT in the generation after it.

I'm with OP on this one. I feel the PS4 level of fidelity is good enough, if it never got better than that I'd be just fine. It really feels like it's going to be diminishing returns from now on. Of course it's nice to have more and more sprinkles on top every time, not going to complain about that :) Who knows, could be just that you get used to each generation so that you kind of get blinded to how it could be even better. Maybe after getting into the PS5 I'll start seeing the current graphics like I see PS3 graphics now..

I was just mentioning the big leaps: the internet and motion controls.  I definitely noticed that ability to fight a giant creature though.  You could kind of do this in Gen 6 with Shadow of the Colossus, but it was really a puzzle game.  Figure out how to get to the right spot and then press X to stab.  In Gen 7 you have games like Dark Souls where it's not a puzzle game anymore.  You are really just fighting a giant monster.

At this point I'm most interested in the raw processing jump rather than the graphical one. Especially in the AI department. It's 2020 and most NPCs/enemies behave just like they did 10, 15 or even 20 years ago. But I guess it will still take another generation until we see significant changes...