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since i own a reletivly new 720p screen, yes. to agree with alot of people in this thread, a 720P machine would be perfectly acceptable for a next gen machine, niether of the current 'next gen' machines comfortably handle 1080p and I expect Nintendo's nect machine to be of similar spec.
I expect the next gen MS and sony machines to be fully 1080p with motion control at a high price and nintendo to go for a 720 machine, with control and a much lower pricetag.