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

[Black RL]

Info about the amount of polygons in FORZA3 (wikipedia):

http://en.wikipedia.org/wiki/Forza_Motorsport_3

"The new graphics engine features ten times more polygons in each car model, bump mapping, and texture resolutions four times higher than before. Also, it is confirmed that the game will run at 60 frames per second."

10 Times more than FORZA2, some cars can have 1.000.000 polygons!