It has better processing power than the Xbox, but still can't match it graphics capabilities, which is rather sad no matter how you look at it. Xbox can output 720p and 1080i (and look absolutely amazing in games like Soul Calibur 2), and supports shaders that the Wii does not, so you can get some absolutely stunning (for a 2001 machine) graphics like you see in Half-Life 2, Doom 3, or Chronicles of Riddick.