It's weird how i considered the ps2 graphics to be amazing at the time

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I think the old CRT's helped a bit too. I'm not some CRT weirdo, they're super obsolete but LCD's just don't look very good at those low resolutions and bit depths, the softness and texture of CRT's helped break up plain textures, smooth out aliasing and get rid of a chunky pixel look you might have on LCD's.

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This is true of DVDs too.

DVDs are worse than you remember (though later encodes certainly look better) but they're essentially "Digital VHS" quality.

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Many of the digital transitions were like that honestly, digital cameras, possibly early CD's too, their big selling point early on was convenience. The resolution/bitrate/bitdepth had to get high enough to overcome the downside of the digital nature.

You could probably extend this to a lot of other technology too tbh.

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The games were designed to take advantage of CRTs and if you play them on LCDs with no CRT filters all the art looks weird

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