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Irrational have designed Bioshock too look like that, it's not part of some "trend", modern, artistic or otherwise.
Listen to how Mr Levine describes the conceptual beginnings of the world of Rapture, (page 4), below.
While we're there, I think focusing on the graphics is missing the point, again from Mr Levine (same page, above), below.
This is the sort of guy I want making games, again, same interview, page 1, below.
page 2
GameSpy 5 September Interview.