AMD director of ISV relationships Neal Robison claims Microsoft's next Xbox console will be capable of graphics seen in the movie Avatar.

Additionally, Robison also promises big improvements in artificial intelligence and physics.
Technology company AMD, who supplied the graphics hardware for the Xbox 360, claims that the next Xbox will be capable of the level of graphical detail seen in James Cameron's movie Avatar. Even on PC, that kind of technology just isn't here yet, but AMD claims the Xbox 720 will launch with it.

Robison also mentioned that the A.I. and physics capabilities of the next-gen hardware will allow for every pedestrian in a game such as Grand Theft Auto or Saints Row to have a totally individual mentality, meaning when you shoot a gun or run someone over they don't all just do the same thing. There will be no more mob mentality, where everyone just screams and runs away; every NPC will actually be an individual character.