xyz Sega is famously known for this style. It's an artistic choice, perhaps it was born out of technical limitation from the start, but it definitely didn't evolve and stay because of them. Daytona and Sega rally is old.... But Sonic Adventure is not that old. And Virtua Fighter 5 Ultimate is from 2021. Old games have their extremes; today, it would be done more subtly.
When I say the "Sega" look, I didn't literally mean "The ubiquitous combination of (0.0, 0.0, 1.0) blue sky, (0.0, 1.0, 0.0) green foliage and (0.5, 0.5, 0.5)". I meant the super-optimistic, perfect weather conditions in a "paradise-like" setting.
There are still lots of games that have a similar bright art direction that look amazing. Good art direction doesn't default to dark and gloomy. However, it's ultimately a matter of personal preference.