I could have called it MS is full of crap but I thought i'd be diplomatic. Read some of the forum responses though, clearly they didnt feel quite the same way.
http://www.eurogamer.net/article.php?article_id=61708
I'll stick in the relevent bits for the link shy.
"Microsoft has refused to confirm rumours that flagship title Project Gotham Racing 3 won't run at 720p - but they're not exactly denying it, either.
"The only performance number a gamer should care about is the output, as that is what is actually viewed and enjoyed," a Microsoft spokesperson told Eurogamer".
"Microsoft has previously stated that all Xbox 360 games will run in high definition - according to a statement on Xbox.com, "Games are required to be authored for 720p and 1080i."
"Microsoft did, however - and the spokesperson told us that this isn't an issue for gamers: "What is going on behind the scenes in the code or the HW to get the incredible visuals for Xbox 360 is not what gamers care about.
"They just care about playing great looking and innovative games, and that is exactly what Xbox 360 and the launch lineup has provided."