QUOTE(RadATI @ Feb 13 2006, 12:48 AM)

If an Xbox 1 can do 720p and 1080i, then WHY CAN'T AN XBOX 360 DO 1080P?

Well if it werent for the PS3 hype machine we woudlnt even be having this discussion.
So to answer you why not, because 1080p is not a widely accepted standard. Almost no display supports it neither through HDMI nor DVI nor component. So using it as a marketing gimmick is just typical Sony BS.
Read the recent PS3 devkit article at kikizo and you'll find out the PS3 devs are all aiming at 720p with upscaled 1080i/p just like on the 360. The nvidia devs even say "resolution is the killer of graphics" and were developing the RSX to target 720p not 1080.
Thus, the PS3 1080p will be nothing but an upscale done by the PS3 hardware (unless the game specifically supports native 1080). The same result can be achieved on a 1080-native display by letting the display upscale 720p to 1080p, instead of the 360 doing the upscaling.
With the PS2 even 480p was hard to come by, and on the xbox1 you can count the 1080i games in one hand and 720p with two. So now instead of being happy that all our games are or will be 720p native and widescreen, Sony has managed to get you doubting the 360 with simple empty words and hype. Success for Sony.
Now add what they said about running TWO 1080p displays at once. If you believe stuff like that then what can we do.