Microsoft's Xbox 360 and Sony's PlayStation 3 are fantastic machines, but they're starting to get fairly long in the tooth. In the last few years, phones have been able to get up to nearly the same level of graphics as the two consoles, and according to NVIDIA, the phone in your pocket will be able to outperform your console.
The slide above was shared with Anandtech by NVIDIA. The solid lines are estimated performance and the dotted lines are trends. Therefore, according to the graph, phones will exceed Xbox 360-level graphics in 2013-2014.
For what it's worth, the Xbox 360 (usually) pumps out 720p resolution graphics during games, so all of these 720p displays that are coming out on high-end smartphones could actually make a mobile game look exactly like its console counterpart.
I don't consider myself a hardcore gamer; I have a PS3 and a few games, but I'm typically just burning rubber on Gran Turismo 5 since I don't really have the time or attention span to get into a game – on a console. However, I find myself investing insane (almost obsessive!) amounts of time into mobile games. Infinity Blade 2 is one that comes to mind; it looks gorgeous on my iPad and my iPhone 4S. If I could have a handheld Xbox 360, that would be even better and would certainly make a better case for mobile gaming.