Microsoft removes High Def requirements for XBOX 360 Devs
 

When the Xbox 360 first arrived, Microsoft had a requirement that all titles needed to run at 1280x720, or what most call 720p resolution. While a couple of high-profile titles were able to get Microsoft to relax this requirement, the majority of titles had to adhere to this requirement.

From what our sources tell us, Microsoft has moved away from the 720p requirement, allowing developers more freedom in choosing the best resolution for the game that meets the needs of the title, rather than attempting to enforce a standard which can lead to trade-offs that just are not in the best interests of the game itself.

http://www.fudzilla.com/content/view/15360/38/

So next gen will become closer to previous gen, with resolution so low that no respectable PC owner would call <1280x720 resolution HighDef.

1280x1024 resolution is 17" monitors and some 19". Most have 20~22" screens which run 16x0x1x00 resolution, higher than "HD Ready". A 24" monitor can be had for ~€250, a HD 4770 for €100, enjoy 1080p gaming I'd say :D