Some games take a "realistic" graphical approach when it comes to color, and in such games you tend to see a lot of grays and subdued tones. Other games, on the other hand, have rather colorful graphics, exaggerating the color differences between objects.

Examples of "realistic" graphics include many non-Japanese games, like many WRPGs. (Baldur's Gate, Fallout, and (if it counts) Morrowind are good examples of this style.

Examples of colorful graphics can be found in many Japanese games, like JRPGs. Quest 64, which I'm playing right now, is an example of this. I could also mention the likes of Super Mario 64, as well as Paladin's Quest, as examples of this.

My question is, which style do you prefer, or do you prefer some other stylistic color choices?

Depends on the game. The Vanishing of Ethan Carter & Elder Scrolls look great "realistic", but I also wouldn't change Bioshock or The Witness art style at all and definitely prefer that stuff when it's done right. On the other hand, I've found some "new old shooters" like Amid Evil can be a little too garish in overdoing the "Hey look at us, our art style is really REALLY not 'Quake 2 brown'..." thing.

Like the user above, I'd say it depends on the game, although, even in a realisitic game, there's nothing quite like a brightly coloured something to break the monotony. Indeed, the combination of the realistic and the colourful is what makes the cyberpunk genre so visually appealing sometimes, like when neon signs reflects off rain-drenched streets.

I think real life is pretty colorful when you're looking out your window on a sunny day, so I'm not sure I'd boil it down to realism vs. unreal. A game could have an overcast level that feels more grey and muted but then also have another level set during a sunny afternoon that is more bursting with color, but both could feel realistic. I think many games do this kind of thing, like Divinity OS which I am playing now.

If we're more talking art design though, like Bioshock's crazy art deco fantasy environments, then I agree with the others that it depends on genre. A first-person military shooter you probably want to look as real as possible, but anything leaning more toward fantasy I tend to like a little stylizing. I think games would be better off shooting for a CG animated film style most of the time, rather than realism. Dishonored is a good example where I thought the "unreal" art style benefited the game immensely, and it's more realistic sequel wasn't as interesting looking.

I don't much care TBH as long as the game is good, but I am becoming sick of everything being colorful comic graphics lately, without blood, gore or anything due to accessibility and age ratings. Think Overwatch and similar style. Every big company does this to maximize profits and it's becoming pretty boring...

I think there's a balance. Around 2010, everything tried to look realistic and washed out (F1 2010 is a good example, as is Serious Sam BFE). My preference is "realistically colourful".

Agree 100%

Colorfull or realism don't matter much if it hurt my eyes and/or can't discern what is part of gameplay and what is background.
I think more important is if it does fit the atmosphere of the game. A "goofy game goes well with saturated, colorfull graphicas but can't imagine a vampire style, or something like Dark Souls on a non-desaturated palette, near black and white.

Fortnite type of games give me headache after some time but I'm perfectly fine with Mario.
Even after finishing King's Bounty the legend (quite crappy game if you ask me) I still have issues with the over saturated colors.

Games that made me wow graphic wise these past years have been total war games, warhammer for example with its crazy supersized genius backgrounds ( ever fought on a battlefield with a black ark on the background ? or city designs gothic fantasy made real ) or the watercolor painting come to life that three kingdoms sometimes feels like, Mass Effect Andromeda on higher graphics settings for sure..... Anthem in both design and color grade... with a lot of color i tend to think towards disney, in that aspect my preference most certainly lies with a realistic graphical preference... how odd ever

Actually, with respect to Elder Scrolls, I think it would be interesting if Morrowind (chosen specifically because of its more alien setting) would be interesting if it had lost of bright colors. Is there a mod that does that? (I'm OK with things like purple giant mushrooms on bright green grass.)

What do I like, mustard or syrup? It depends on the meal I'm having.

I prefer whatever is best for the game in question.

I prefer games like Bioshock, that mixes both the grim realistic style and colorful style. The contrast between the two is actually quite appealing. As good as Dishonored or Prey is, both of these games miss the mark by being more grim. They have similar game play to Bioshock, but the games (while quite good) are lacking that quality that draws you in like the fantastical worlds of Bioshock. So while some games really benefit from grim dark imagery (Grim Dawn) I think the juxtaposition of the bright almost cartoon colors and shapes with the grim environments and story telling ae e what helps it work best. Take Fallout for example. The games' main graphics are realistic, but everything is represented by the classic blue and yellow clad Vault Boy. His cartoon smiling face represents everything from "training videos" to stats and skills. That cartoon depiction then further combines with the comic relief to give you a great contrast of a grim post-apocalyptic world that is on the cusp of collapse and a friendly Vaultec video with some great and often subtle gallows humor.