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Well, video game images are rendered, meaning they are created on the fly. The stuff you see in movies is already rendered on super computers that spend thousands of hours crunching numbers to spit out the special effects you see.
Part of it is hardware, you can't get consumers to buy a new console every year. Second part is the software needs to learn how to get everything it can out of the hardware. Early games for the Xbox 360 do not look as good as newer games. Finally there is the time. The time it takes to make great graphics and textures is pretty intense. It's not profitable to invest 10 years in a game to get everything perfect. Even as it is, games are developed for sometimes as many as five years with budgets approaching 100 million dollars.
When you look at NBA 2K11, the graphics look pretty good considering that it's being rendered in real time on a $200 piece of hardware. IMHO
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