SDJ, do you only mean that Tekken 6 on the 360 back cover (pointlessly) says "1080p" somewhere? And on the PS3, it is real and say's 720p? I think so but I'm not sure.
Also I don't know it anyone answered the question, as to whether or not 360 can display a 1080p image natively in native 1080p in a native fassion. haermm (sorry couldn't help it what with how many times I hear that in the resolution discussion).
...wait a sec...
Didn't the 360 get an update or something that changed it dramatically? Like I noticed I can listen to music in-game...though that probably has been around always.
Maybe, just maybe, if you were looking at an image on the 360, you would be in the dashboard, which can only be displayed in 720p? And the 1080p option is only available once you put a movie/game disc in? Most likely. Even the dude in the video, said something about PS3 dashboard being only in 720p upscaled to 1080p...and if this is the case with the 360, and you can only see pictures on the 360 dashboard...then there's no way in hell that can be seen in 1080p. Maybe it's until when the 360 is in "disc play" mode that it changes to 1080p...then again, some people may say no since, when you change the option on the dashboard, you immediately see changes, however...you may not see the change between 720p and 1080p respectively, on the dashboard, until it's in disc play. Just a theory. 😄