Ridge Racer 7 on the PS3 was a launch title, and is 1080p native. I don't think it was as much a matter of chronology there as it was making things work.
I think this is different when it comes to games, or at least it can be.Jamisonia wrote: For those so insistent on 1080p graphics, make sure your viewing distance is close enough so that your eye can even resolve 1080p (guess what most don't). With a 50in 16:9 TV you can sit a maximum of 6.5 feet away from the TV and still be able to tell the difference between 1080p and 720p. Any further and you cannot tell the difference.
For home theater use, most of the source material (well, with regard to film at least) was created for/at higher resolution and scaled down. Neither 1080p or 720p are full detail, but at least with regard to film stock it'll be harder to tell until you get closer.
Games are generating detail on the fly. A texture that looks great in the distance becomes a blocky mess up close, for example. Creating a game with assets intended for 1080p can result in a noticeably better looking product. Same as 30fps is "smooth", but 60fps is still noticeably smoother.
In general though, there's a long, long way to go with tech. We're bumping into cost/benefit problems, but that's usually the case isn't it? Tools are evolving alongside tech, making any ceiling a temporary one.