In the past, I have always looked at Demos from Games and thought this is very good and getting close to movie quality. But that "close to" remained "close to" for quite some time. Even though It is improving every year but you can still tell it is gaming graphics. Even if some of the shots are not real time and pre rendered, they are still gaming like. That Unreal 5 Demo was the first time ever I thought this is Hol…
Meanwhile all the dynamic stuff is still fairly primitive IMO. At around 4 minute in the video they briefly mention the water effects. They don't really spend a lot of time on them and for a good reason, they don't look particularly good.
When I was a kid in the 90s I definitely expected future games to look a lot better, but I also expect gameplay and world interaction to progress massively. Fully interactive environments you can interact with like in the real world. You could destroy everything, dig holes, build things, have advanced physics, great AI for NPCs etc...
It saddens me that the AAA video game industry is almost entirely focused on eye candy first and foremost. That being said I concede that I'm clearly in the minority, after all the Uncharted games are generally considered to be good games when I find them incredibly boring.
I hope that now that we can reach near-photorealism in games they'll have to come up with something new to keep pushing the envelope.