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I'm involved in a multi-year project which we switched the format from xvid to h.264 in the series. There was no real change in the fan base I've seen. It's not a major title. And we're not releasing in 720p. But I don't see any problem in switching completely to h.264.
You don't have to switch all of sudden to h.264 @ 720p. If you want, start switching the low res version to h.264 too. Why are we so stuck with the idea that low res must be in xvid and high res must be in h.264? Do what Arienai is doing already.
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