I have heard that TVs are better suitable for consoles like the Xbox 360 with the Kinect, etc., rather than computer monitors. Why is it so?
Is it just because of screen size or does it have something to do with the screen refresh rate?
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Technically there is no difference between Monitors and TVs, however, due to the way some games are programmed, there can be a significant difference in the gaming experience - most significantly for FPS games.
Since consoles have quite bad performance, the developers use a lot of tricks to increase the framerate. One of those tricks is reducing the Field of View (FOV), i.e. the angle that the player can see in front of him. PC games usually use 80 degree, console games are around 60 degree. From a low distance, i.e. when you sit right in front of a Monitor, the low FOV can cause headaches and nausea for some players but from a longer distance, i.e. your couch to a TV, it is perfectly fine.
A modern TV is a monitor with some extra circuitry (tuner, embedded player for videos, etc), there is no reason for monitors to be worse at displaying console video than TVs. Having built-in speakers or an audio out if you're using HDMI will be necessary.