If it can't then yes, I take back what I've said. I see no reason why the 360 couldn't do it in 720p @ 60fps though.
1080p is a completely different kettle of fish from 720p, iirc it is over double the number of pixels which puts a HUGE amount of extra strain on the GPU. A good example of this would be Crysis: Warhead, that will run flawlessly on my PC at 720p, if i up it to 1080p my frame rate plummets.
I'm not saying the 360 isn't capable of this, there is no way any of us will actually know, but what i am saying is no one, ever, in the history of consoles has produced graphics this good running at a solid 60FPS in 1080p. Surely everyone must agree with that?
People seem to forget the excellent scaler chip in the 360...
Scaling to 1080p and rendering at 1080p are a completely different kettle of fish.
[EDIT] Taking the previous article into account, even though the resolution does drop in busy scenes, the bottom end is still 50% higher than 720p
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