Since their inception, video games have had two major limitations: the potential of the hardware in each era, and developers' skills in navigating those limits and making the most they could out of it. This allowed for surprising games to be introduced at times when they might have seemed technically impossible. It also paved the way for sustained evolution, with photorealism now only "a stone's throw away."
Video game consoles have also played a key role in this regard. I know that many of us prefer to game on PCs, but consoles have been the driving force of the industry, so much so that their heavyweight status has led them to monopolize development cycles. Gone are the times when games were created exclusively for PC, harnessing all the platform's hardware had to offer. Today, it's all about the star consoles of each generation, and the consequences are crystal clear.
Consoles have certainly impacted the world of video games for the better, but they've also had some negative effects. Life cycles have been getting considerably longer, and this, combined with exclusive developments centered around this format, has ended up slowing down the use of the latest-gen PC hardware. Thus, the overall evolution of video games has been held back.