That used to be a thing when older machines were using 8/16 bit CPU.
Easily noticeable, by the capacity of the said machines.
For example, we can easily figure that the NES is 8 bit, by the graphical limitations.
We can also understand that the SNES is 16 bit, by the superior capabilities, displaying more colours, and providing more possibilities, while still being a bit limited (eg: 3d rendering being very difficult at the time).
Starting from the fifth generation of video game consoles, it's pretty much 32/64 bit stuff, and given the power of most modern consoles, as well as PCs, it is no longer relevant. Reason being that a console from 2001 (let's say, the Nintendo Gamecube) and a newer console, like the Nintendo Switch, couldn't be differentiated that much. I do know that the latter has more power to give, and it will look definitely better on all technical standpoints, but if we take in consideration that it's only due to the superior processing power, we could technically make the same code running on both machines. Certainly a thing that wouldn't have been possible back to the 8/16 bit era. That would also explain why cross generation games look sometimes drastically different during that time.