Summary: “Avatar was rendered on supercomputers”  Yes, I realize that, but they are not rendering at near the resolution of Avatar at 1080p.

And since the 4K TV's are coming out, and 1440p monitors are already out, and have been for a couple of years.  It would be sad to have a consol that is already rather dated before it even his it's first major price break.

Not too many people at 720P TV’s when the Xbox 360 came out. Yes they were out, but more of an ‘elite’ TV, like the 4K will be in a few years.  And all the X360 games are developed at 720p.

Look - I'm not saying that they Xbox 720 will have 'Cameron’s Avatar' level graphics.  Although, being rendered several years ago, with ‘Moore’s Law’ things have improved much since that time.  And the Xbox 360 is equivalent of a super computer less than two decades ago.  And if it comes out in 2013 that’s nearly 5 years since Avatar was rendered.

 I'm just point out that there is plenty of room to improve 1080p if that's all it can do.  But there also to seems to be tradition that the target should be the new TV's coming out.

Have computers improved in the last five years?  Sure they have.  But I don't think you have any idea what it took to do the CGI in that movie.

"Cameron told audience each frame of finished film takes 30-50 hrs to render, then double that up for 3D."

http://www.slashfilm.com/early-buzz-24-minutes-of-james-camerons-avatar-screened/

"They had 10,000 quad processing machines just in the render farms alone — that's 40,000 processors"

http://www.thesun.co.uk/sol/homepage/showbiz/film/2760950/Avatar-week-in-The-Sun-3D-secrets-behind-the-300m-movie.html

We are going to be nowhere near being able to do that in real time for years to come.