Realistic Doesn't Necessarily Translate into Fun

Playing video games is supposed to be fun. One aspect of gameplay that makes gaming fun is immersion in a world that is completely different from our everyday world and our everyday lives. Playing games is a form of escapism. If ultra realism is achieved and the virtual world looks just like the real world, what's the fun in that? And if you're not setting out to create a world that mimics our own, then as a designer you don't necessarily need the most powerful engine or the most powerful GPU ever created to craft your vision.  

Some of the most played or highest selling games of all time have succeeded not because they represented realism, but because they represented fantasy and a way for players to forget about their own day-to-day routines for a few hours at a time. World of Warcraft, Mario, Zelda, The Sims, etc. all immerse the player in a fantasy. Games that do attempt to present a more realistic-looking world are often filled with dull gray/brown color palettes, which is sadly the case in many of today's games. We all spent thousands on HDTVs, which have the ability to display tons of vibrant, eye-popping colors, and yet everything looks like a poop-stained concrete wall. That's why we cheer when we get games like Katamari Damacy, Okami, or Flower – these titles make great use of colors and are innovative in their own right. Video games are an art form; designers should open their minds rather than looking out their windows at city buildings for inspiration.