It makes sense that more and better titles are coming. I mean, look at it from this point of view:
Gears2 was on par with anything the PS3 had until KZ2. But Gears had a few handicaps that KZ2 didn't:
1) Gears 2 was made with the Unreal engine, which is multiplatform. A big budget development with a custom engine could accomplish more, which is exactly the reason KZ2 had it's own custom engine.
2) Gears 2 had options like Split Screen and Coop, which while awesome game play features, do limit a developer from getting the sharpest possible graphics.
If a company decides to go the KZ2 route on the Xbox 360, use a big budget custom engine and streamline it by removing certain features, it wouldn't be a big surprise if it could match KZ2 graphically.
The real challenge I'd like to see MS meet is... match it's graphics without removing features.
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