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These are the problems if you confront the typical internet frat boy demographic with numbers.

I think this sums it up pretty nicely.

they have to make a choice between going for higher detail settings or higher resolutions.


Completely true. But then ...

What they've come to understand is that, if you don't have enough horsepower to go for both, it's always preferable to jack up all detail levels to the max, rather than to go for the highest resolution possible.


And this is bullshit. You never have "enough horsepower to go with both". Unlike PC where you have less powerful and more powerful PCs, in consoles you always have a fixed amount of power. And you can spend it either on more details or on higher resolutions.
If a higher resolution looks better developers will do this if more details look better developers will do that. The sweet spot this gen is definitely at or below 720p because only a minority has 1080p displays. And it is definitely over 480p because no PS3 or 360 game goes so low. Besides 1024x600 has almost twice the pixels of a PS2 or Wii game so its hardly SD.

On problem exists. Crappy games like Haze that most likely had framerate problems are easier to finish by reducing the resolution instead of polishing the engine, so time pressed developers will go the easy way and reduce the resolution, which looks crappy Haze was totally blurred when you compared it to titles like Uncharted.

Good exclusives seem to be always at least 720p and look clearer than titles with lower resolution so I think this will be the most common resolution for future titles. And this is perfect for most HD TV owners. Only FullHD owners have to use BluRay to fire up all their pixels.