It's a mix of the two, Worf- the graphics are (naturally) that much better on the jump up to a new system. The preferred way would be to hook up to an LCD or plasma HDTV (even though it is still a big jump up in graphics playing on a normal tv). Most of the store kiosks are set up with a tv running at 720p, the resolution used for most games. With a small screen like they use that is plenty sharp to get all the detail.