I want to add something. The Wii has to calculate much lesser pixel, and therefore don't need the same power to calculate some impressive things. Number of Pixel for each resolution:
2073600 1080p
921600 720p
307200 480p
so 720p is three time more pixel, 1080p is 6.5 time more pixel. It is not like that the 360 (e.g.) need 6.5 more calculation power to do the same as the Wii does on a higher resolution. But it does matter.
If somebody has HL2 you can try it with you PC, the frame per seconds get up if you lower the resolution. If you have a CRT it is hard to tell the difference between the resolutions. Also the textures doesn't have to be in a "high resolution", so you can save RAM. I don't say the Wii can do what the others can, but the lower resolution helps to pull impressive things with the much lower horse power.
Edit: Ha, i knew it has to be somewhere! Back in the days, i played a lot CS. I had a CRT and not the most powerfull PC. That are the FPS i got on different solutions:
1024x786 55 FPS
800x600 68 FPS
640x480 79 FPS
Sayed at least the console :) The difference between the resolutions was hard to tell, only the 640x480 the graphic leaked a bit. Only the crossbar was bigger on the lower resolutions.
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