I think that even some computer games could also be considered art as they were rather inventive and highly experimental. Though as of late, I don't see many games you could call art since many focus more on technicality than on artistic aspects. The result is often pretty but boring eyecandy that doesn't do much to enhance gameplay: better antialiasing would not really help me in combat in an rpg game.
Smoother pixels and better animations on an npc would technically make for a more convincing gameworld but only if their dialogues are coherent and mesh with the ongoing plotline.