I think we've reached the peak of graphics, or pretty damn close. I can't imagine us ever playing games that are straight up real life looking.
Lets just say more mainstream as the tech is there i got to watch a tech demo of a concept for a game that made you actually wonder if it was just a video shot in rl with the character put into it afterwards or actual terrain but god the machine that they had to run that was a beastI think once the tech becomes available/more mainstream we may well see something like mapping of high-resolution stills and video from real-life scenes to virtual objects to create very immersive experiences.
I think we've reached the peak of graphics, or pretty damn close. I can't imagine us ever playing games that are straight up real life looking.