Kudo-san works at PlatinumGames. What does he do? "When I introduce myself to people outside the industry," he blogs, "I explain by keeping things simple, saying, 'I add the fire and smoke, etc. inside a game.'"
"However," he adds, "it doesn't seem like very many people 'get it.'" To help illustrate the point, there are two clips on the PlatinumGames of Bayonetta with effects and without effects. Obviously blood would also fall into something that is "added" to a game.
This is an interesting comparison, and one many probably don't think about, but yes, special effects are important don't cha think?
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Effecting Bayonetta [PlatinumGames]