The problem is to run games like that you're looking at spending a minimum of 2000 dollars. The hardware is just too expensive so manufacturers have to focus on efficiency. The ps5 and series X cannot even run unreal engine 5 at 60fps and 2160p. To me thats a non starter since unreal engine is the bedrock of development for many studios in the past. And the cards are getting too big. Part of the reason why the ps5 is massive is the GPU.
I think we've largely reached a point where visuals are good enough for most people. I can immediately recognize a celebrity when I see them represented in a game. With death stranding I immediately knew who the actors were playing because the machine was powerful enough to accurately represent their faces. I don't expect the next Nintendo console to be more powerful than a ps4 pro or series S.
Reggie from Nintendo said something back in 2006 that basically explains what their whole mission has been and why they don't care as much about keeping up with the latest visual technology.
10:24
The goal is to get EVERYONE playing video games. How are you going to do that with price tags that go up to 70 dollars per game and consoles that cost over one quarter of rent? It's better to stretch out the generation and let the hardware get cheaper, THEN put out a new system. Even if it takes 10 years, you're still getting money in that time. People are still buying games and consoles. Especially from places like Latin America, Africa, and eastern Europe