Yes, video games are becoming more graphic, because they are not what they used to be. In the 1980s, the most violent it got was a cartoon Mario jumping on a Koopa Troopa. Today there are very graphic depictions of violence between humans, and simulations of war. That cannot be watched for hours on end without it affecting a person
Movies and video games and even television shows are becoming more and more graphic as time goes on. Everyone is trying to push the envelope and be more daring. This somehow means more graphic material. Children are becoming more desensitized every time a new 'graphic game' comes out and the next version needs to be even more graphic.
One: Graphics. As another user had already mentioned, as graphics get better in games, we start to see less pixelated or discoloured blood pools or sprays of blood. Not to mention there have been games that tried to make the gore look as realistic as possible (i.E. Soldier of Fortune). Detailed blood pools, blood splatters, exit wounds, etc. all contribute to making a game look less cartoony and more realistic in the graphic sense.
But there's yet another reason for more games becoming graphic. The target audience. They've played video games back in the day as kids, but now they're adults and there's no reason for them to still be treated like kids. Lots of M for Mature games sell very well these days, especially first-person shooters like Call of Duty and Battlefield. With the M for Mature rating (in North America) comes graphic violence. You'll see dramatic death scenes in singleplayer campaigns, you'll see death animations that are a sore to look at, you'll hear more swearing, especially when someone gets killed. It all contributes to making a game look more gritty and realistic in its violence.
The term "Graphic" is slightly misleading in this case. Graphic could refer to the image graphics, and in this interpretation, the answer is yes. The second possible interpretation could mean more graphic as in violent and gory, and sadly this is also answered with yes. So overall the answer is a profound yes.
Video games are definitely becoming more graphic and they will continue to do so. They are not the only thing becoming more graphic though. Movies, television shows and other forms of entertainment are also becoming more graphic. It is simply a resjult of the changing times and the changing acceptance.
As graphics improved from the 90's to the 2010's I do believe that games became more graphic, especially in terms of violence and gore. I think this was the result of improving graphics and not the result of people becoming more violent. I think it is also important to point out that violent games do not breed violence.