Oh ok, I always thought AMD GPUs have had similar, if not better, scaling capabilities even before Xenos. Swore I read that somewhere, but don't remember where. Thanks.
I think you might be right - I'm sure I can remember ATI output scalers being better than nVidias even before the 360.
I've tended to go with Nvidia cards and the output scalers were always utter shit. I discovered this by accident on my 6800 - I accidentally enabled an unscaled output mode when I created a custom output resolution and my monitor took over. It was so much better I couldn't understand what had happened at first, then I created two custom resolutions (scaled/unscaled) and kept switching between the two in a state of disbelief. The 7900 GTX I had produced results that were just as foul. Looked like simple bilinear.
But I guess MS and Nintendo will get whatever they want. MS specifically wanted to support monitors and early HDTVs and presumably asked for and got something great. But Sony lol nVidia scaler.
I'm guessing Nintendo have reasons for specifying what they have. Will be interesting to see how native WiiU games handle output and monitor support (or not).