Scott Henson, Microsoft's Director of the Game Technology Group, said full HD 1080p games for consoles aren't likely. He says basically any developer will tell you that they will not have a performing game at 1080p.
So is 1080p destined to be a standard purely for a tiny minority of Full HD owning movie fanatics? "Whenever you make a series of bets about technology transition you have to find the centre of gravity; where's going to be that 'sweet spot' for the next generation? We looked at all entertainment - movies, television, games, and the television sets themselves worldwide over the next decade, and 720p and 1080i is absolutely going to be the sweet spot.
"Of course every game is HD enabled from the get-go, but [developers] are going to get more and more out of the processor and out of the graphics chip as time goes on, as they get more familiar with multi-threaded programming and multicore architecture. Games are just going to get better and better."