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It's a bit like Wolfenstein 3D's engine was used to make better games, They didn't reinvent that.
Most big AAA games are 3D simulations with an overlay of shallow gameplay because the driving force is not gaming but military applications.
That's giving them too much credit. They can't even get that much right. If ARMA for example is a good example of trying to teach one how to simulate war and military tactics, then it's also one of the few games that ISN'T overly focused on graphics, because knowing how to use a gun matters more than how many pixels that gun has.
That said, increased geometric density can still matter for actual game design reasons. I'm thinking of all the games people routinely complain don't have enough enterable interiors, or enough interactive world elements, or enough behavioral dynamism on the part of NPCs, or enough visual feedback in the form of environmental damage, etc.
As long as people keep demanding more sheer stuff in games (and complain about repetition of said stuff, aka railing against the nature of procgen) more compute and render (and labor) will be required.
It annoys me to no end that there hasn't been a real focus on improving game physics. Why don't games have water and fluids that behave realistically yet? Why don't things have appropriate acceleration and falling speeds based on their shape and air resistance? How about gases with different densities interacting in real-time? How about destructible environments that actually crumble based on the materials and building weight loads?
All of those actually affect *gameplay* are would be so much more noticeable than some ray-tracing garbage that can barely be appreciated because you need AI-generated frames just to be able to use the setting. Game physics doesn't feel like it's gotten any better than it was in Half-Life 2, and that's a damn shame.
The push for graphically intense and more demanding games comes from a severe amount of pressure from Nvidia so they can still sell cards.
The reality is developers could still be making amazing looking games that would run on a 1080ti with just a little bit of clever programming and an eye for artistic design.
That's not the industry right now though. It's a factory line to support an ever expanding greed from the tech industry.
What youre talking about would require that games were still made by software engineers and nerds,
These days games are made by Starbucks enjoyers that have a passion for "design" and only know how to work with unreal.
In order to get better physics and realistic air speed calculations you'd need a proprietary engine, And a darned good one. That would require a genius to maintain and years to develop.
No publisher is going to go for that when they can just use Unreal and have their game ready to be monetized in half the time.
This is sadly the direction we're headed
I mean ever since film was invented people had a field day making propaganda or hidden messaging
More detail, more fps, higher refresh rates, wider aspect ratios, make people more entranced...and I do it to myself
When your goods is not quite good enough to compete, a fancy package can lure a lot of customers.
When you found a working formula on this world, you will try to invest anything to keep it running. This includes their whole AI chip monology later.