Cosmological simulations of galaxy formation have evolved significantly over the last years. In my talk I will describe recent efforts to model the large-scale distribution of galaxies with cosmological hydrodynamics simulations. I will focus on the Illustris simulation, and our new simulation campaign, the IllustrisTNG project. After demonstrating the success of these simulations in terms of reproducing an enormous amount of observational data, I will also talk about their limitations and directions for further improvements over the next couple of years.