I will be honest. I haven't read every single thread regarding Nintendo's stance on the "no HD" support for Revolution, so some of my points below may have been stated many times before. If so, mods, please lock this thread and send it to the pits of doom.
First of all, this isn't damage control. I think Nintendo should support HD resolutions with the Revolution. However, from their perspective I can understand why they don't feel they need to.
1) Hardware Cost
By supporting HD resolutions, you need a much more capable GPU that can sustain significantly higher fillrates. Both the PS3 & X360's fillrates are faster than previous gen, but they are not orders of magnitudes faster. By increasing the standard resolution to 720p or 1080, the number of pixels increases 3x and 6.75x respectively. Unless fillrates increase much faster than that (which they aren't) developers are going to be facing similar problems they did last gen with performance simply because of increased resolutions. (A similar argument can probably be made for graphics memory bandwidth)
Since Nintendo is not supporting those resolutions in hardware, they can produce a significantly less expensive GPU yet get similar 'game performance' albeit at non-HD resolutions.
2) The types of games they make
Nintendo has rarely tried to create the most visually realistic games. Visual fidelity is not the highest priority for their games. One could argue that cartoon realism is much closer to their eventual goal. They don't need HD resolutions to make prettier Wind Wakers (though it would be awesome!). However, the holy grail for a Mario title (IMHO) would be visual fidelity approaching The Incredibles; HD resolutions could certainly help towards that goal. Perhaps this is not a goal Nintendo wishes to (or can) achieve this generation.
3) Their audience
Face it, Nintendo is moving farther and farther away from the cutting edge hardcore gamer and much more into the mainstream casual player. They have also consistently targeted children much more overtly with their branding and gameplay. As some would say, they are a kids company.
I expect that HDTV adoption among casual gamers and 6-12 year olds TV sets will be extremely low over the next few years. How many parents on GAF are planning on buying a 2nd HDTV set for their kids to play games on anytime soon?
Die hard gamers who are Nintendo fans will buy the Revolution regardless of whether or not it supports HD, so they aren't a factor even though they are a core part of the Nintendo audience.
When you consider those factors (and I'm sure there are more that I've missed) I can understand why Nintendo has made this decision.
First of all, this isn't damage control. I think Nintendo should support HD resolutions with the Revolution. However, from their perspective I can understand why they don't feel they need to.
1) Hardware Cost
By supporting HD resolutions, you need a much more capable GPU that can sustain significantly higher fillrates. Both the PS3 & X360's fillrates are faster than previous gen, but they are not orders of magnitudes faster. By increasing the standard resolution to 720p or 1080, the number of pixels increases 3x and 6.75x respectively. Unless fillrates increase much faster than that (which they aren't) developers are going to be facing similar problems they did last gen with performance simply because of increased resolutions. (A similar argument can probably be made for graphics memory bandwidth)
Since Nintendo is not supporting those resolutions in hardware, they can produce a significantly less expensive GPU yet get similar 'game performance' albeit at non-HD resolutions.
2) The types of games they make
Nintendo has rarely tried to create the most visually realistic games. Visual fidelity is not the highest priority for their games. One could argue that cartoon realism is much closer to their eventual goal. They don't need HD resolutions to make prettier Wind Wakers (though it would be awesome!). However, the holy grail for a Mario title (IMHO) would be visual fidelity approaching The Incredibles; HD resolutions could certainly help towards that goal. Perhaps this is not a goal Nintendo wishes to (or can) achieve this generation.
3) Their audience
Face it, Nintendo is moving farther and farther away from the cutting edge hardcore gamer and much more into the mainstream casual player. They have also consistently targeted children much more overtly with their branding and gameplay. As some would say, they are a kids company.
I expect that HDTV adoption among casual gamers and 6-12 year olds TV sets will be extremely low over the next few years. How many parents on GAF are planning on buying a 2nd HDTV set for their kids to play games on anytime soon?
Die hard gamers who are Nintendo fans will buy the Revolution regardless of whether or not it supports HD, so they aren't a factor even though they are a core part of the Nintendo audience.
When you consider those factors (and I'm sure there are more that I've missed) I can understand why Nintendo has made this decision.