Original Comment by: Rico
Graphics definitely improve the look of the game, but do they improve gameplay? Depends on the game, I think. Sometimes yes, sometimes no. Sometimes, gameplay isn't even important to the success of a game. Look at Halo on the Xbox. The only reason that game is so popular (in my opinion) is that Microsoft saturated the market with ads for the Xbox; Halo, being the launch title, clearly got swept up into the machine, and we now have millions of frat guys playing Halo, thinking they've got the best game ever in their sweaty little hands.
Then you have a game like Ico, for the PS2. The game, while graphically gorgeous (really, one of the finest looking games you can make for a console system), is much deeper than its film-like visual quality, or the magnificient vistas on display. Basic thematic elements (light and dark - literally) are the core of the game; your only weapon is a wooden stick, your only enemies shadows. Sounds simple on paper, but without the evocative graphics, I think it would have been a pretty dull game.
By the way, the original ad campaign for the Playstation was "R U e", where the "e" was red in color. Hence, "Are you ready?"