AMD, creator of the custom graphics chip processor that powers Xbox 360, claims that the next-gen console from Microsoft, dubbed Xbox 720, will boast graphics on par with James Cameron’s award-winning move Avatar.

That’s a bold claim from AMD executive Neal Robison, who spoke to the Official Xbox 360 magazine (via The Examiner ), and claims that there’s a “lot to be excited” about when Xbox 720 arrives, including the way that A.I can be manipulated like never before. Robison believes that in games such as Grand Theft Auto, NPCs will “have a totally individual mentality, meaning when you shoot a gun or run someone over they don't all just do the same thing. There will be no more mob mentality, where everyone just screams and runs away; every NPC will actually be an individual character.”

The fact that AMD is talking up the graphics of the 720 does suggest that it will be involved once more, but the company has yet to confirm whether Microsoft has signed them up.

Many industry experts believe that the Xbox 720 will be revealed at E3 in June next year.