Dryden said:
I disagree with this, because "diminishing returns" is always relative. Now, I don't discount the fact that we do oftentimes place too much emphasis on graphics, but every generation shows advances that are easily distinguishable from the generation before. Every step of the way over the past 15 years, I've bought the latest technology thinking, 'Damn, could the graphics EVER get any better than THIS!"
Yup, they always do, usually in six to twelve months! I particularly remember being floored by the "realism" of Madden 2001 when the PS2 launched. Game doesn't look so hot anymore.
Ten years from now systems will be able to render so much more architecturally, and I think facial animations especially will improve to such a huge degree, that the tech will make Killzone 2 look silly. Wash. Rinse. Repeat ten years after that, and then ten years after THAT ... etc ...
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Diminishing returns for the widest general public. As in with each generation the advances are less and less noticeable to, say, my mom.
Not for me and you, because let's face it, we're graphic geeks :)
But just look at it this way: if you took the best looking PS1 games and played them during the PS2 lifespan, they looked downright ugly. I do still enjoy my share of great PS1 games nowadays, but their 3d graphics hasn't aged well.
Now you take really good looking PS2 games and play them today. You don't really see that stark contrast, and they are aging much better... I think you will still be able to play GOWII in 5 years, 8 years after its debut, and enjoy it without thinking during the action "this is good... if only it looked decent". Sadly, that isnt true of, say, my beloved MGS.
In the future the games that today look really good will have an even longer lifespan. There will be games looking better than KZ2 on the current gen consoles and even more on the next-gen, but we will still be able to play KZ2 in 7-8 years and think it looks good. As a proof: it looks great if you compare it with PC games, and PC graphics is usually 2-3 years ahead :)