Graphics matter, but not to the exclusion of all else in a game. No one will ever complain about a great game(or even just a decently good game) having great graphics, but people will violently complain about a shitty game where the only thing positive is the graphics. Even so, as has been empirically demonstrated by numerous games, having great graphics(of the type expected with AAA gaming) is not an a priori condition for a pleasurable or even immersive gaming experience(in fact, one can make the argument, and some have, that the over-emphasis on the graphics has actually precipitated a decrease in the overall quality and value of games, while increasing their cost). Many other factors can contribute(sometimes more significantly) to a more immersive experience, such as controls, musical score, use of sound and atmospheric effects, artistic style, game flow and choreography, game mechanics, gameplay design, story, and communicated ideas and concepts.
There just is no one single factor, and many other things beyond graphics go so much deeper into creating a pleasurable, immersive gaming experience; great graphics is merely the icing on the cake.
There just is no one single factor, and many other things beyond graphics go so much deeper into creating a pleasurable, immersive gaming experience; great graphics is merely the icing on the cake.