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Indeed, video games do tremendously more today. It's actually insane. In 1996-97 we were worried about drawing pixels more than once, when that pixel had a diffuse texture and maybe some very-low-quality lighting. Today's shaders are astonishingly lavish in comparison;
I would have had a hard time believing it if you went back in time and told me. Then of course the CPU part of the engine is doing so much more as well (though not proportionally as much as the GPU part, and that is indeed often a failing of engineering on the CPU side).
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