In terms of static scenes, I'd say the industry is at the end of an S-curve right now. In terms of motion, character animation, and physical interactions betwee

In terms of static scenes, I'd say the industry is at the end of an S-curve right now. In terms of motion, character animation, and physical interactions between objects, there's still a long way to go. You need a AAA budget just to get a character's hand to realistically pick up an object in a scene without it jumping; I think these sorts of problems are next in line for graphics engines to solve.