Fable on XB360 was just re-released to 1080p I believe.. but the point is the Xbox One CAN do 1080p fine. I beleive there is a new developer kit coming out which will make 1080p a norm on the Xbox one..

Well discussion has gone no where fast.
To actually address the OP. Resolution is only a subset of graphical quality which is itself a subset of the game's utility(value). While value is inherently subjective among consumers, we can still extrapolate that resolution allows for more detail to be displayed on a screen capable of displaying that extra detail.
The extra detail helps define fidelity, so it only matters as the graphics do.

In other words, Resolution is only important if Graphics are important.

Check GTA sales over any other game that presents better graphics than the latter.

GTA stomps anything because of the GAMEPLAY.

No GAMER in the world would trade GTA 5 for maxed out Crysis.

Resolution is talked here because their console haven't presented much games to rival the competition.

alrightiwill said: Well TBH 640x480 is not a bad size. It's just a 4:3 480p image, most of TV history is this format. Obviously since we have gone widescreen the image would have to be 16:9(720x480) so I'll just upload a screenshot from a HQ encode of Titanic in 480p Not too shabby is it? And this is indeed 480p albeit at 21:9 AR Now for two different 720p images: HQ Not HQ As can be seen not all 720p is created equal so this validates the point that resolution isn't the most important thing with regards to quality.

We need some sort of "like" button. Perfect example!

Resolution matters because:
1- The generation just began and there's already a significant graphical difference between ps4 and X1. Which means it will get bigger as time passes.
2- The cheapest console is also the strongest.
3- X1 has lower resolution because is weaker in specs and especially because of kinect. A gimmick that most people don't care about enough to buy X1 for 100$ more.

It's not that they don't give a shit, it's more of a ...

a) Trade off between convenience and quality

b) Tradeoff between price and quality

c) Being aware and adapted to the enhanced quality.

Most people tend to prefer convenience and price over quality (me included) but the extend to which this happens depends on people. To me, for movies to be seen on a desktop PC, DVD quality used to be enough a few years ago; but now my brain has adapted to the higher quality, I demand at least 720p now. And If I am gonna watch it on a 32+ inch TV, and if the movie is full of sci-fi fx, it definitely needs to be 1080p. But if you'd asked me 5 years ago, I'd say who the hell needs full HD!?

Resolution matters in the sense better is preferable. But the difference between 720p and 1080p is not significant enough to the average consumer.

We've never seen the masses move to a platform solely for graphics. PS4 is successful for getting the price right and having strong software.

I agree that resolution is only one aspect of the utility got from the source. Those utility functions always assume everything else to be constant. So basically two identical video sources (graphs, movies etc) except for their resolutions, the one with the higher resolution will provide better utility, although the perception will depend on the outlet and the addressee. One exception though, the resolution may affect the functionality and improve the utility through other channels as well (such as better range, depth of field, zoom or view point etc), not just visual clarity.

On a massive screen, yeah.

Side by side, yeah.

But could the average person give a definite answer on a screen being 720p, 900p, or 1080p? No.

I have a 32 inch 720p TV and a 32 inch 1080p. I could easily fool people into believing my 720p screen is 1080p.

I could tell the difference between 720p from 1080p screenshot from across the room on my 23 inch screen. It just looks blurrier. I don't know how else to explain it. I'm not saying everyone can that easily, and I acknowledge that I spend a lot of time in front of a monitor, so I'm probably better than most. But if I can do that, I think most people should at least be able to tell the difference under realistic conditions.