Why are home video games seemingly stuck at the same level? They're not immersive enough to be boredomproof?

When will there be the breakthrough in video game technology that's been rumored for decades of 3D and holographic games that put you in the game. There's too much of an antiseptic feeling playing PS3 and Xbox in that you're too detached from the action and unlike video arcade games which involve much more sensory input, home consoles lack the ability to make you feel like you're in the middle of the action.