That doesn't read like a mandate to me.
As for PC gamers caring one way or the other, I'm not understanding that. We already know that for performance and graphics quality, the PC versions are in the vast majority of cases the ones to go for.
I don't recall Microsoft mandating 720p either - perhaps you have a link?
This is all I have read about the issue:
GI: One of the things we’re noticing now is that you’re ramping up the availability of 1080P games – Lost Planet is 1080P, Virtua Tennis is 1080P. Are you telling developers within Microsoft Games Studios to shoot for 1080P because one of Sony’s big deals is 1080P?
Spencer: I think maybe early on we were sensitive to the 1080P thing because it seemed like a real thing. I think now that people have seen games that are out there, some PS3 games that aren’t 1080P and 360 games that are 1080P, I think maybe the buzz, at least my perception of the community has gone down a little bit between trying to differenciate the kind of have and have-not games of 1080P versus not 1080P. There are certain games where I think that framerate and buffer size will make 1080P an achievable destination for those game on any of the platforms. In those cases I think we would push for it But to kind of mandate because we’re afraid of being exposed – like I said I think that was a splash in the water about 1080P but now it just seems like one of the resolutions that 360 and PS3 run at.
Shane Kim: Commercially we still believe that 720p and 1080i is the sweet spot. We still believe that. We support 1080p output for games so its not an issue anymore, right? I think if people look at that and there’s a real benefit for the game experience, we’re able to do that. Certainly we’re not at a disadvantage.
Spencer: As a game developer you know there’s a tradeoff whenever you’re going to 1080p in terms of what you’re going to put on the screen. So you just need to make sure you’re making the right trade off for your game. And you can see that when you’re looking at today’s games. Some of todays games are having to give up a little bit to get there. For those games it might work out, and for some of our games it’s going to work out.
http://www.gameinformer.com/News/Story/200702/N07.0215.1114.44585.htm...and this:
With its mandate for HD gaming, it's surprising the 360 doesn't have an HDMI or DVI output for the very best digital video.
http://www.soundandvisionmag.com/av/1093/xbox-360-page2.htmlI think Microsoft's mandate was with HD gaming in general, as in 720p or greater resolution. Sony, on the other hand, is adamant that only 1080p is "True HD". In terms of putting the money where the mouth is, I'd say Microsoft is more on the mark than Sony.
Both have failed to deliver consistent HD (720p or greater); in the case of Microsoft, not all their games are in 720p or greater. In the case of Sony, not all their games are in 1080p; many are not even 720p.
I dunno - make out of that as you will. I think if anything, the Wii is the only one that has kept its promise: no HD!
Edit: About Phil Harrison's comment: It's not wrong - 1080p is the "currently highest commercially available resolution for flatscreen TVs", but this excludes the PS3 for all but a select few games.
About the PC gamers caring, of course we do! I was actually one of those who would've bought a 360 and a PS3 because Sony and Microsoft were promising me something I though was only achievable with a PC. I am happy now that I actually got out and saw what these consoles were really capable of instead of relying only on photochopped screenshots.
I thought, perhaps foolishly, that this generation's consoles would deliver on their "1000x more powerful than your PC" promise.