The games industry’s obsession with visual fidelity is costing them money and talent
(www.theguardian.com)
The graphics don't need to be hyper realistic, as long as they are good, have a consistent style and whatnot.
Of course in general "realistic graphics" are considered good, and so it will be pursued but they are just sacrificing everything to maybe achieve a higher level of realistic graphics, which obviously self sabotages the game