I wouldn't go as far as to say that good graphics equates to no atmosphere, but photorealism does have its disadvantages.
Ultimately, it depends entirely on what the game is trying to do. For example, with a game like Heavy Rain, photorealism works; similarly, something like Killer7 is better suited to a more stylised aesthetic.
The biggest problem with the holy grail of photorealism though is that the more realistic games look, the greater the disconnect if the game world and game physics do not share the same measure of real world authenticity.
Ultimately, it depends entirely on what the game is trying to do. For example, with a game like Heavy Rain, photorealism works; similarly, something like Killer7 is better suited to a more stylised aesthetic.
The biggest problem with the holy grail of photorealism though is that the more realistic games look, the greater the disconnect if the game world and game physics do not share the same measure of real world authenticity.
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