Do Video Game Graphics Matter?

According to Bleszinski, the graphics of today's games are not good enough... and he wants video game graphics to resemble Avatar quality. He says "The Xbox 360 is great, we've pushed it further than we ever have with Gears of War 3, but I want 'Avatar' in real-time and beyond. I want fully realistic CG, and are we there? Absolutely not. I think there's absolutely room for improvement."

The stress they are putting on improving the design of video games leaves me to think about a few things: 
Are people more likely to buy video games with beautiful graphics and design? Do people prefer video games that are better designed?


A microsoft representative told CNET, "as an innovator we're always thinking about what is next and how we can push the boundaries of technology like we did with Kinect. We believe the key to extending the lifespan of a console is not just about the console hardware, but about the games and entertainment experiences being delivered to consumers."


So...how important do you think the graphics are in playing video games? And, if video games do not evolve and improve with today's technologies, will their lifespan be shortened as well?


---------------------------------
'Avatar' Like Graphics  
The above article talks about the computer graphics of video games.