Playing 3D games on Google Nexus 4 4.7 1280 x 768 pixel resolution (320 ppi) WXGA IPS screen is good. But you can enhance it further by enable 4x MSAA (Multisample anti-aliasing). Yes, turning on MSAA will improve 3D applications and games graphics quality on Nexus 4. All the edges of polygons (the most obvious source of aliasing in 3D graphics) are antialiased. Therefore, you get better image quality just like below example. However, this 4x MASS feature is limited to OpenGL ES 2.0 Android applications and games only. And there might be minor performance hit on intensive 3D games.
How to enhance 3D apps & games graphics quality on LG Nexus 4?
Just refer to this guide to do so ~ How to enable 4x MSAA in OpenGL ES 2.0 Android apps & games?
You may not see much improvement on Nexus 4 display itself. But surely will see the different when output to bigger screen like TV or LCD monitor.