It's only 720p. Not sure why my Japanese friend says it's 1080p unless they released a different version there. The graphics are perfect and the framerate is excellent at 720p. it never skips a beat. My only complaint is the load screen. It's quite fast (only a few seconds) but the framerate slows to 1 fps while loading. That sounds like lazy programming to me. You can tell when challenging virtual players in the arcade and their costume window slides onto the screen rather jerkily while the load process goes on. Ick. I hate lazy programming. Everything else is fantastic. It's a fun fighting game, and if you have 5.1/7.1 surround you're in for a treat with the audio. It's excellent. I've not seen any graphic glitches or tears yet, either. As with most fighting games, it's a rental. I mean really.. who buys these things? I only did because I have friends coming from California next month and we'll need some 2 player games to play. This gives me time to practice.