Square Enix has always set the bar for me as to what games of the next generation should look like.
I remember the first time I saw the intro to Kingdom Hearts, I can't tell you how many times I watched it. Then as I would play the game I couldn't help, but imagining the game looking like the pre-rendered cutscenes.
Some games in the current generation have gotten pretty close to that, but Square Enix has raised my expectations again with Final Fantasy: Advent Children. I know it is technically not a game, but that is what I want my games to look like. And nothing this generation has even come close.
If you watch Advent Children, the world looks real. But at the same time it looks a little too good to be real. And the same goes for the characters, they look as real as you can get without being creepy. If you show certain parts of the movie to people who are unaware of what they are watching, they would most likely think they were watching live action.