1) Hardware
2) Human resources
Xbox 360 is now a 5-year old technology, computer gaming is not as hot as it used to be (more money in console games) and there's no way they'd be upgrading systems every year - the cost to buy would be a lot higher than the current $199 xbox price and companies wouldnt be able to keep up + you'd have a marketing clusterfuck (for example, a mid-high end pc gaming card costs $400 alone. good luck selling that to the masses).
And even if you had super awesome cards that are updated yearly, there's only so much detail that so many people can put into the game. To design an ultra-realistic "thing" that would render well, takes time..
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