There's basically nowhere to go in terms of graphical fidelity. Games from the PS4 still look pretty modern. It's nowhere near the jump between the SNES and N64 or the PS1 and the PS2 and we'll never see a jump like that again. Throwing more money at graphics doesn't meaningfully further games anymore.
A lot of expenses go towards better graphics, but we are at the point where better graphics have less impact since capabilities are already so high that the improvements are minimal and hard to notice.
Plus the better you make the graphics, the more powerful hardware is required to run it, which means fewer people can buy/run your game, meaning less sales and thus the return on investment is lower.
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u/Neronoah 14h ago
We are in a bit of decreasing returns on investment for that. Specially if money goes to graphics instead of gameplay.