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Pretty simple = article is not about GAMES, it is about playing VIDEO.
It's already well known and publicized that XBone games are outputting games at 1080p.
Outside of car racing and sports games all these are upscaled from 720/900p, but the output is still 1080p.
When the article talks about VIDEO, that's what it means, not games... Even if cutscenes blur the difference
So apparently this is just some unbelievable goof up of Microsoft, to not support 1080p video,
even while doing so for 4K video content (which of course there is practically no material to utilize with).
I mean, that technical oversight is weird on it's own, but this is the console whose selling point is
that just having a videogame console is not enough, it's all about TV,
and more importantly having a goofy new voice controlled interface to run your same old cable box.
So if it's all about TV, why isn't real HD video supported? Kind of baffling.
Of course, MS' TV push will have problems considering their TV schedule integration doesn't work in many countries, and in the UK (a 360 stronghold) they do not have a BBC iPlayer client (while PS4 does!)
which comes down to the BBC's policies on open access and MS' insistence on putting EVERYTHING online behind their XBox Live Gold paywall (even stuff that doesn't rely on MS servers, like Netflix and web browsing).
Anyhow, I'm sure they'll fix the 1080p video very soon, although that doesn't help for the video games.