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VAMatt said:
it isn't the only factor, though it sometimes seems like marketers think it is. I assume we got to this point because resolution is easy to explain, easy to understand, and easy to quantify. So, its the low hanging fruit for the marketing department.

Also, it doesn't require as much extra work to implement as creating more detailed assets.

Mr Puggsly said:

Eh, Alan Wake has nice looking assets and effects but that resolution is rough. I found it tolerable during that era, but I would modern games avoid going that low. Alan Wake running 1080p on PC is a world of difference on the presentation, but its still enjoyable on the 360

Yeah I edited that part out after playing a bit further, beyond the opening night scene, I mean I still think it looks good but yeah, not quite one of 360's absolute prettiest.