If the 360 can't do graphics like the PS3, HOW can it do THIS?

[ithis]

I have a somewhat related question. I read a some years back, in a Lair review, that the reviewer felt that the amount of units (speciffically soldiers) on the screen at one time was something, he said, "you can tell your friend he's XBox can't do". Is this true, I mean, are there games on the XBox360 that have the same amount of characters on screen as Lair or Heavenly Sword?

Lair example, the first part of the video.

Heavenly Sword example, at 0:45.

Please don't treat this post as hostile.

And also, Lair is a great game :).