Recently, the computer science students of my university hosted a LAN party, and as usual, people brought a console—in our case, Wii (which is mine) and a PS2 for GH. Funny thing is that, despite all the budgets (shiny 1600x1080 projector, the only video in is a composite, 480i video). add to the fact that it's projected on one of those seminar rooms screens (estimate at 90"), and I would guess the graphic sucks...
But guess what? it's perfectly fine. Text are completely legitible, and I do not see any degrading even when the light is on. The only problem is the Wii sensor bar, but that's another story. So between beating the crud out of each other on enemy territoy, we have fun with Wii Sports. (Note: Warioware is too complicated)
When people keep saying that U.S. will get HD soon, and etc. they keep forgetting that there's a nation that's even more looking forward to technology then us: the Japanese. Now, let's be honest, Nintendo is still more Japanese oriented, so quite frankly, for a nation that have more HD sets than us in percentage, certainly they wouldn't be "dumb" enough to just give out 480p only, right?
But they did; they are up against PS3, which is not only more powerful, but also have a SIXAXIS controller and HDMI output. Yet, the Wii outsold PS3 by 3:1 ratio. (Don't throw in 360 since 360 is not welcomed by Japanese simply due to it being western). Clearly, either the Japanese people need to get the eyes check, don't know about electronics, or what I believe is right: it's more important on what is actually provided, then having perfect specs that did not delivered as intended.
For those that use the computer argument, I would suggest you play Quake the original on your highest resolution, then play HL2 on 640x480. even on a lower resolution, HL2's graphic, with all the features turned on, is still more beautiful then Quake on a much higher resolution.
My point is this: it's not how much spec a machine have, it's how well the developer use the existing engine.
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