Resolution is more important. AA can come next, if there's power for it. The most important thing, which will have the biggest impact on image quality compared to current gen consoles, is having them display ACTUAL HD. People complain about the aliasing in current console games, but AA isn't what they need. Just about anything will look like sh!t when it's 960x540, upscaled onto your giant 1080p TV.
I find it funny that that's not being talked about more. Especially considering the PS3 and 360 are so often referred to as "the HD twins". That name doesn't really make any sense, considering that the VAST majority of games on those systems aren't even rendered at 720p, much less 1080p. The majority are closer to 960x540, which is basically a widescreen version of 800x600, which was a standard resolution for PC monitors in the late nineties.
Higher resolution just makes everything look better. Which makes sense. More pixels = greater level of detail, and less jagged edges, naturally, even without AA. Higher resolution makes textures look better, even if the textures are exactly the same, just because there's more detail available with more pixels. Perfect example of that is the PC version of Dark Souls, with the DSfix, to allow proper resolutions. That game already had surprisingly detailed textures, which were hidden under that crappy resolution. Use dsfix to make the game actually render at 1920x1080, rather than the not-even-720p it was at to begin with, and it's like you just cleaned a layer of filth of your screen.
That's why I think putting out real HD resolutions should be the top priority for the next gen consoles. Especially if the PS4/nextbox aren't coming out til late 2013/possibly even 2014, there is NO excuse for them to not have every single game rendering a native 1920x1080. Any less will be absolutely laughable.
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