720p with 4xAA, 16af, 60fps and a nice hardware scaler to 1080p would be the ticket. It'll make for pretty and SMOOTH gameplay and you could use the resources for all the bell and whistles for 720 vs straining to hit 1080p just for the sake of resolution.
I just don´t understand a lot of the discussion going on here. What you describe is very small visual difference compared to the best titles we have today (at least to most of us). Do you really think the platform holders would like to start a new hardware cycle for such a small upgrade, considering all the costs involved? R&D cost, pre-production, marketing, subsidies, new development tools, etc. Not to mention the hazzle it means to split the market with the current gen consoles, both for the platformholders and the game developers.
I´ve noticed a small shift in the predictions of when the 720 an PS4 will be released. Previously people talked about 2011-2012, now I see more people leening towards 2012-2013. Personally I think 2013-2014 is more likely, and even later than that if they decide to make some cheap hardware upgrade e.g. increasing RAM to the current gen.
MS said they are extending the 360s life cycle with the new Natal controller and I believe they are absolutely right, just look at how Nintendo resurrected the GameCube with a new controller, same, same, but different.
There are many good reasons even without the new controllers that are popping up, I could google a few quotes predicting a long current gen life cycle, but I just pick a recent one by Take-Two´s CEO Ben Feder:
Who can disagree with that?"I think this console cycle is going to be a lot longer than people think," said Feder. "I think it's still very early--we're definitely not in a five-year cycle, and this is going to go on for a long time. I think that's good news for developers and good news for consumers. When that console change happens, I think there will be a lot of excitement for it at that point, because technology will have had the time to really accelerate and develop."
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