Although a handful of software titles on the original Xbox support 720p, and the PlayStation 2 had 1080i support in GT4, the Xbox 360 marks the first console to bring high-definition gaming as a standard. Until the PS3 is released, HD gaming is still something that the Xbox 360 does better than any other system. A lot has been brought up about the lack of 1080p support from the Xbox 360 and this deserves some attention.
1080p support is essential for video and photos. It's less important for games. The first comment I always hear is that "no one can afford 1080p televisions anyway" and that's just being silly. These consoles are intended to have a shelf-life of about 5 years. Likewise, the transition from analog to digital TV means that there will be a big increase in television sales shortly – and many first-time HDTV buyers are waiting for 1080p displays. To say that "no one can afford 1080p televisions anyway" is equivalent to saying that "no one can afford a 500GB hard drive anyway."
For video and movies, de-interlacing 1080i to 1080p is important. Having the playback device reconstruct the full frames of a 1080p24 Hollywood film ensures that all of the original resolution is faithfully reproduced. Likewise, when using the Xbox 360 as a photo slideshow unit, the extra resolution is clearly helpful.
For 3D games, 1080p support is less important in the sense that if you were fill-rate limited (i.e. anti-aliasing), you'd be comparing a 60 frame-per-second 720p game against a 30 frame-per-second 1080p game. In many cases, you'd want the 720p60. Likewise, if the graphics are so complex, 30 frames-per-second refresh rates may only be achievable at 720p resolution. The need for both 720p and 1080p gaming is identical for the need for 720p and 1080i broadcast formats. There will be certain games that benefit from the higher resolution while others will benefit from the faster frame rates.
Summary
Despite some initial launch stumbles and a lukewarm reception to the Xbox 360 in Japan, we still remain optimistic about the Microsoft Xbox 360's success worldwide. In our list of "The 11 Mistakes Microsoft Made with the Xbox 360," we necessarily focused on many non-gaming problems with the system. When discussing the features that the Xbox 360 does better than the competition, virtually all of the strengths are gaming related. Microsoft already has a robust software development environment and sufficiently powerful hardware to last for the next 5 years. While Sony will be bringing additional horsepower and blu-ray support and Nintendo will likely bring an SDK of similar, only the Xbox 360 incorporates the best of both worlds.
I am reminded of the Nintendo DS. The DS launched to a lukewarm reception internationally – it was ugly, the touch screen and microphone were mostly gimmicks, and the Sony PSP was so much more flashy and cool. Today, while the PSP still remains popular, sales of the Nintendo DS have reached 13 million units as developers have been able to take advantage of the programming environment and bring new gaming experiences made possibly the dual screens. The Xbox 360's killer feature is in Xbox Live. The real question will be how developers will choose to use the "always on" network connection to bring new gaming experiences.
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