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The Maturation of Video Games
1up.com is running a piece examining how video games have matured since the early days. The article explores what the social context of gaming has been, from Hunt the Wumpus to 'Hot Coffee'. From the article: "The maturation of games might be viewed more accurately as a climb into a unified grace. By the time console gamers were wowed by Sonic The Hedgehog's 64-colour world, computer gamers were already familiar with zooming across galaxies, building cities and landing virtual planes. The 486 ran at 66 mHz and had the capability to create 3D texture maps. 16-bit consoles, which ran at 7 mHz, could not replicate a game as impressive-looking, innovative and as huge as Doom."
"Game journalists" tend not to know game history. If a game wasn't popular and wasn't released 5 years ago, then it didn't exist. Admittedly, this isn't entirely their fault: game history tends to be a self-taught, self-researched field and many (game and non-game) journalists seem to have the critical thinking and research skills of a rock.
Game designers/programmers are, admittedly, not much more informed. Again, the same problem exists -- game history is a self-taught, self-researched field and if you are using your professional time to learn about cutting-edge systems and video coding techniques, you don't have much time to spend on research.
Unfortunately, without a good grasp of what video games did in the past, a lot of good game ideas/techniques are lost. Games end up like the latest Hollywood block bluster -- bland, predictable, and stuck in one or two genre ruts.
Considering that the ATi GPU in the 360 is more advanced than the r520 that we are still waiting for them to relase...I'd say yes...and easily. Graphics-wise it shouldn't be a problem, but I don't know how cpu-dependent the engine is so who knows how the rest of it would run.