On some games, true, you'll barely notice, on others...yuck! It all depends on how the colours got used in the first place. as a general rule, lots of strongly different colours will be OK, subtle graduation will not. Truth is, I can't tolerate any loss of tone, hue or saturation in any way shape or form. I've done a lot of digital remastering (mostly martial arts movies) and I notice these things. I'm the guy who cringes when someone watches TV in the wrong aspect ratio or, god forbid, doesn't even bother doing the set up with proper colour bars. I also calibrate my printer and scanner to my monitor ...
... maybe I'm a little anal about these things but hey, we all have our quirks.