There’s an essay up at GameSetWatch where a Brandon Sheffield speculates that we might have hit a plateau as far as how much consumers care about graphics in video games. The low-def PS2 and Wii are still way more popular that the hi-def PS3 and Xbox 360.

It’s a good essay, but I think it’s overlooking something obvious. Most households don’t have a television capable of showing off these consoles’ allegedly better graphics.

The installed base for HD in the U.S. is 25% of households. That number may increase rapidly in the next year or two, but is it any wonder the PS3 and Xbox 360 sales to date seem gimped compared to their lesser cousins?

I don’t think most people want to buy a console that they can’t use to its full capabilities, especially when some games designed for hi-def look muddy and terrible on a regular tv. The most famous example is Dead Rising for the 360, where plot-critical text was illegible on standard televisions.

It doesn’t help that the HD market has been stupid confusing. If you shell out for a cheaper 720p set right now, are you going to regret it later when 1080p sets become cheaper? Can you even percieve the difference? Do you, as a Joe Schmoe Consumer, even know what those numbers mean?

More likely, HD televisions have just plain been expensive. I disagree with my colleague Steve on the subject of home theaters. Gas prices may be going up and soda prices at the theater may be gaining a dollar or two, but most people aren’t of the mindset to drop thousands on home electronics to avoid a $10 movie ticket.

Still, with prices going down, maybe more people will take the HD plunge and later pick up a higher class of console. Maybe we’re not at a graphics plateau so much as a foothill.

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