Returns aren't always going to be graphical realism, itself. There's a certain degree of perceptive-improvement. That is, environmental things that add to the overall experience. More complexity of an environment, versus fewer high polycount models. Additionally, remember that we're watching these all on 1080 screens. I do my PC gaming at 2560x1600, so even the most powerful thing on 1920x1080 (like a console) is going to look a little less impressive to me, I think.
Also, consoles are generally using commodity hardware. The only thing holding us back from mind-blowing stuff right now are development budgets, console-focused development, and return-on-investment focused development where good enough is good enough. Take someone known for utter overkill insanity and put their output on today's beefiest consumer hardware on a PC and your brain will be fried.
We are a very long way from reaching some sort of plateau, as far as technological potential. We may reach a point where manufacturers and developers stop exploiting and demanding more (probably not), but we are very far from a "well, that's all we can accomplish!" point. Even in twenty years, nothing in a game will even remotely compare to the absolute complexity of a real world environment and everything you see on the PS4 in 2013 will look dated as fuck in five or ten years. The number of sounds, diffusion of sounds, and different things that can impact sounds and how they are projected and perceived are infinite. Same with the complexity of lighting, shadows, the way natural things look and move.
I remember thinking how nothing could ever look more realistic than Mortal Kombat in the arcades, in the 90s. So people who say that about games today kind of make me chuckle.
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