A gaming blog by the name of PlayThree.net claims to have some top secret info from a Bungie insider. What is that info, you ask? According to the inside source, Microsoft is pushing Bungie to make sure that Halo 3 can churn out native 1080p support. 360 Fanboys will know that the Xbox is capable of 1080p, but for most games this effect is created by upscaling a 720p image. Apparently, last year's E3 made Microsoft think differently. While most games will remain 720p, the sheer amount of money and manpower being poured into Halo 3 make it the perfect candidate for true 1080p. According to the source, "if [1080p] can't be done on Halo 3, then the Xbox 360 can't do it at all." Apparently, Halo 3 is already running at 1080p at 60fps, though it's not final code at this point. Also, Bungie reportedly wants to be sure the game functions perfectly on the Core system, which adds to the difficulty of maintaining frame rate in large levels with many players. Oh, and just in case you were hoping to try out 1080p during the beta next month, don't hold your breath. The source notes that it won't be available in the beta.
As always, information from "inside sources" should be taken with a grain of salt. Besides, it's not like a lack of true 1080p is going to keep people away from Halo 3.
Update: Fixed grammatical error. Flogged self.