There is a reason why hyper realsim isn't found in games. It takes far to long to actually produce the content.
Look at some the graphics you can see on the PC. Some of that stuff is approaching photorealism. However developer don't just have to make the graphics engine, they also have to make the content. That's the hardest part. Making a level that looks photorealistic takes ungodly amounts of time as it is. Sure, tools are getting more robust, but increased complexity requires more man hours.
The only games we'll ever seen approaching photorealism are mods for games. Mods don't have the same time and budget restrictions. They take a finished engine and a finish game and overlay work ontop of that. All of the major planning and design is done. They are free to upres textures, create new models, and fidget with lighting settings as much as they want as they aren't getting paid. No release date, no timeline, no budget.
Photorealistic games won't happen because of the amount of time and money it takes to make content. Sure we'll see a few tech demos here and there that blur the lines, but full length games won't happen.
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