How about WoW, EQI, Nintendo GBA, DS, Wii, the PS2, GoW2, System Shock2, PSP, Guild Wars, Final Fantasy XI ffs, etc...
I'm not sure how I can explain market segmentation any more clearly... Or are you just going to pretend that such a thing can never matter. PSP is PSP, and is on a different curve from PS3. WoW is WoW, so don't talk as if it should be put in the same universe as Gears of War.
Secondly, there will never be a conceptual similarity between the continued subscriptions and/or ownership of an old product that hasn't diminished in value and the future sales of new product which is on a level comparable only to those older ones.
I find it strange all the stats that indicate the vast majority of gamers are playing on outdated (at least 1 generation old) midrange or lower hardware at resolutions of 1280x1024 or lower sans HDR with low res textures, and that these guys are all raging graphics whores.
Again, it's because you're deliberately comparing the wrong things under the belief that it drives a point home. People who have old PCs don't buy new titles, so for people working on titles right now, they're a non-existent market. People who own a DS aren't the ones we'd worry about if we were working a $40million 360/PS3 title. And you'd be surprised how much graphics whore-ism there is even within lesser platforms -- it's not that obvious because the level is understandably lower, but it isn't lacking when put into context.
This culture of keeping up with the Joneses is an absurd falsification much more likely perpetuated by misguided producers, IHVs trying to ensure they will be able to pimp their next hardware, and guys designing million dollar engines than these "graphics crazed consumers".
You can believe that if you like if it makes you feel better. The trend has existed for ages, and it was that trend that created the market for 3d accelerators and GPUs in the first place. It's not just graphics, either. Physics whore-ism is a reality as well, and HL2 really drove a nail in the coffin that we were doomed to enter the spiral on that front. And once again, physics middleware proliferation and PPUs are products of the trend, not sources.
Most people like to believe that the consumer is more savvy these days, and I really don't think that's a very descriptive way of putting it. Being picky and being harder to please is not the same thing is being savvy.
Hell, even many of the high end consumers are far from mindless slaves to graphics... The first thing going through their mind when they pick up a shiny new copy of UT3: what useless stuff can I turn off to get a smoother framerate.
Pfft. That's just graphics whore-ism with different prioritization (i.e. framerate whoring comes first). It's not that they don't want those features. It's that they're specifically picking to disable that which is most superficial so as to take the least away from the visuals in order to gain framerate. Being willing to make small sacrifices is not the same thing as knowing better. If the case were made for a game which wasn't so dependent on fast action as UT, I don't think these same people would be as adamant to trim away, either.