You should get a Plasma then. It's better for both of those uses. Everyone I know who switched to Plasma for their PS360 consoles is never going back to LED/LCD. Every single one of those people thought that LED>Plasma until they stopped buying into the myths and started doing their research after I told them. The IQ is superior in nearly every regard on a Plasma for console games. It's pretty simple why - more accurate colors, deeper blacks, higher real world constract ratio, faster response time and higher viewing angles. BluRays? There isn't even a contest there because deeper blacks is crucial for movies. The only caveat is if you are going to put the TV in a very brightly-lit room, where LED would work better. Otherwise, Plasma > LED in IQ for games, sports or movies.

120-240Hz LED is going to be absolutely worthless for console games as console games on PS360 don't render beyond 60 fps, while most run at 20-30 fps. Even if you could get 75-80 fps, it would be screen tearing galore without VSync. For console games, pixel response time matters way more because your console can't push 120fps like a PC can. Response time is the time taken for a pixel to change value and back again (effectively in an LCD/LED display, how quickly the pixels shift to allow different amounts of light to pass through). In simple terms, the lower this number, the better as it means the pixels will shift quicker. Therefore, displaying fast-paced motion (like games) will have less visual artefacts than a display with a higher pixel response time (which basically means any plasma > any LED for pixel response time). 

Since Plasma is a gas, the pixel response time is nearly instantaneous (0.002ms), much closer to a CRT style gaming experience. Most LED/LCDs have a response time of 6-8ms, with newer ones might be coming in at 2-3ms (but even these #s are often just marketing by LED/LCD makers). This is where a plasma crushes the LED. No motion blur on a plasma like a CRT, no 'screen door'/pixel moving effect and no pixel bleeding/poor backlighting uniformity that many LED/LCDs have. Plasma is actual ideal for console gaming. Bonus: Plasmas even cost less for similar sizes. 

If your budget is only $400 for a 40 inch 1080P TV, try to stretch it to $600 and you can get expontentially higher quality TV.

Panasonic TC-P50U50

http://reviews.cnet.com/flat-panel-tvs/panasonic-tc-p50u50/4505-6482_7-35149658.html

Hey how about this one?

http://www.amazon.com/gp/offer-listing/B001UE6M8O/ref=wl_it_of_o_pC_nS_nC?ie=UTF8&colid=2FP7A968PVG6K&coliid=I8ED4GDD3PXML&condition=all

The 2 sources that list this TV for sale are saying it's "Used". 

I honestly think this is one of those rare cases where spending another $200 is worth it for the much higher quality and 50 inch 1080P plasma. 

http://www.bestbuy.com/site/Panasonic+-+50%26%2334%3B+Class+(49-9/10%26%2334%3B+Diag.)+-+Plasma+-+1080p+-+600Hz+-+HDTV/4841493.p?id=1218541224061&skuId=4841493#specifications-tab

$400 LED/LCD TVs are pretty poor while $400 plasmas are only 720P most of the time. 

You could try going to BestBuy and see if they have a floor plasma model that they might sell you for $50-100 less than the BNIB one.

Another way to think about it: You are going to spend $400+ on a next gen console but then cut corners and get the most budget TV you can get. That's like buying a $400 iPod Touch and $50 headphones. Just like the headphones are the ultimate point of contact with your ears/brain for sound waves, the TV it the ultimate point of contact with your eyes/brain for visuals. If you compromise a lot on those ends, your overall experience is significantly degraded in both cases. But if you really can't stretch your budget beyond $400, you are going to have too choose between a 720P plasma like the Samsung E-450 or a 1080P LCD/LED and there are obviously going to be trade-offs in image quality between both of those options. 

http://reviews.cnet.com/2300-6475_7-10013784.html

Alternatively you might need to start looking at used 1080P plasmas then. 

You are welcome. I would still suggest that you look at some of the TVs in person since ultimately you will be the one using the TV, not us. Therefore, it should matter more if you like the IQ. If you do, just keep this in mind:

http://reviews.cnet.com/8301-33199_7-57424341-221/why-do-plasma-tvs-look-washed-out-in-the-store/

I'm looking for a sub $800 TV myself.  My girlfriend watches Netflix on the daily from the Wii U and I mostly will be using it for Wii U, Netflix, football (seasons over for now) , and the occasional blu ray movie.    I'm looking for it to be at least 50 in.  Anybody have any suggestions?

Watch for this TV to drop under $800. 

http://www.bestbuy.com/site/Panasonic+-+55%26%2334%3B+Class+(55-1/8%26%2334%3B+Diag.)+-+Plasma+-+1080p+-+600Hz+-+Smart+-+3D+-+HDTV/4841545.p?id=1218541222563&skuId=4841545&st=panasonic%20plasma&cp=1&lp=4

or this one:

http://www.bestbuy.com/site/Samsung+-+51%26%2334%3B+Class+(50-3/4%26%2334%3B+Diag.)+-+Plasma+-+1080p+-+600Hz+-+Smart+-+3D+HDTV/5024714.p?id=1218599351098&skuId=5024714&st=samsung%20plasma&cp=1&lp=13

or that one:

http://www.bestbuy.com/site/Samsung+-+60%26%2334%3B+Class+(60%26%2334%3B+Diag.)+-+Plasma+-+1080p+Vertical+-+600Hz+-+HDTV/4848196.p?id=1218551142746&skuId=4848196&st=samsung%20plasma&cp=2&lp=1

The best TVs in the 50-59 inch category are all either Panasonic or Samsung plasmas:

http://reviews.cnet.com/best-50-59-inch-hdtvs/

2013 models should be launching soon, which means the 2012 models should be cleared out soon, as they are starting to be already with $400-500 discounts. The easiest way to tell 2012 from 2013 Panasonic models apart is the 2012 ones have a "50" in their product name, while the 2013 ones have a "60". 

For example, VT50, GT50, ST50 are all 2012 Panasonic plasmas, while VT60, GT60, ST60 would be 2013 models.

http://www.digitaltrends.com/home-theater/panasonics-2013-plasma-tv-line-up/

Do you think it'll drop soon?  I mean arent they on sale for the super bowl lol.    I'm digging the panasonic one the only problem is my living room has lots of windows.