http://www.reghardware.com/2011/07/18/amd_says_xbox_720_graphics_as_good_as_avatar/
Not sure I believe it myself, but would be good to see it happen.
edit: pressed enter by accident - please change title
Chip maker AMD has hinted that the Xbox 360's successor will be able to deliver computer graphics to match those in James Cameron's movie Avatar.
In an interview with the US incarnation of the Official Xbox Magazine, AMD exec Neal Robison claimed that gamers have "a lot to be excited about", the Examiner reports
Robison claims the AI and physics capabilities of the net-gen console would pave the way for every pedestrian in games such as Grand Theft Auto to have an individual mentality.
AMD hasn't confirm it is actually working on Microsoft's eagerly anticipated follow-up, but as Robison is director of independent software vendor relationships at AMD, it's probable that has been extensively speaking with games developers.
And AMD did provide the graphics chippery for the Xbox 360.
Not sure I believe it myself, but would be good to see it happen.
edit: pressed enter by accident - please change title