Depends on the fidelity of the graphics, but I agree with you that the smaller the VRAM usage, the broader base we can support on e.g. Steam. 1GB - 2GB would be the sweet spot for all game types, which 1B parameter quantized models can hit.

There is some evidence that next gen consoles will feature AMD NPUs, and I suspect there will be more available RAM. There's definitely positive tailwinds that will change the hardware landscape over time.