I doubt that the next generation games will look like movies; except for some graphic demos like the Unreal Engine 3.
Here's an old quote from Tim Sweeney:
"Off-the-shelf 32-bit Windows can only tractably access 2GB of user RAM per process. UT2003, which shipped in 2002, installed more than 2GB of data for the game, though at that time it was never all loaded into memory at once. It doesn't exactly take a leap of faith to see scenarios in 2005-2006 where a single game level or visible scene will require >2GB RAM at full detail."
So let's wait and see how XBOX 360 and PS3 will fare...