Yeah they did at the time for sure. When the A500 was released PC games were generally CGA/EGA. The A500 was way ahead of its time, especially when you account for how much they cost.
Around the time I got my A500, my neighbour's dad bought a PC that ran California Games in CGA at about one frame per second. I'm sure there were much better PCs available, but it didn't impress us kids much. They _did_ have Leisure Suit Larry though...
What really impressed me is that I was born around the same time as the A500 but I remember playing PC games that looked worse than this, hahaha.
Part of it is surely that I was using hand-me-down PCs and there was probably some time lag on the games that my dad would get through the sneaker-net.
The art style is also really solid and modern which I’m sure helps hide some of the limitations.