Its not just the current generation. In an earlier day we endured the bit wars; where the systems at the time boasted 8, 16, 32 and 64 bits. What it boiled down to was bragging rights. Look at the Atari Jaguar, promoted as the first 64 bit system, its rivals at the time were the SNES and Genesis. The graphics sucked, and the games sucked compared to the vast librairies from its rivals. Eventually the bit wars ended. Did more bits make a better game? The answer seems to be no as the Jaguar was Atari's last production model console. The lesson seems to be a balance of graphics and gameplay. If the graphics are suited to the game then great, you've got a winner. Look at the Nintendo DS vs the Sony PSP... the PSP is capable of much higher quality graphics, but partially because of bad marketing and Sony trying to push it as a portable theater it is no where near as succesful as the DS. It also does not have the same level of game library that the DS has.