this. Fancy graphics are for fun, not for winning.
When i used to play Unreal tournament 2004 competitively me, and all the other players, changed the resolution to 640x480 and everything in low graphics, no dinamic lighting, no high res textures, not even the view of our own weapon, and the server used a program to make the other players look shinny and with the same model to make it visible and fair.
and we all could play it in 29031x94801231 resolution if we wanted to
Ok, the above is 100% true. However to press this point, let's take this from his friends noob viewpoint of gaming where eye candy and resolution make the game, which equates to higher end hardware. again, having read this whole thread, take out internet speed because that is a factor in console gaming as well, therefore, both PC and consoles r at the same disadvantage.
Second, your friend thinks that graphics allows one to win more often online, which basically equates to a guy with moee money can buy better hardware, so he has higher resolution and cam "see" better. Now what about console players? if they buy a 720p vs 1080p tv, they get higher resolution if they get the more expensive tv.
Granted there are fewer options to increase resolution with consoles but the main point is this, whether PC or console, if you spend more money, whether it be a better graphics card or 1080p tv, you get higher resolution.
So tell your friend to go fly a kite and stop being jealous of your rig.
But if he made the argument that its much easier to snipe on a mouse than a controller...