Well, in TVs, it's not a TRUE 120Hz rate, mind you. It's simply 60Hz (or more likely 24Hz with a 2/3 pull down for broadcasts and most movies) with interpolated frames in between each frame to give you that 120Hz. If you play games with a 120Hz monitor, on the other hand, you will actually be getting the full 120Hz of frames (assuming your framerates go up that high). However, the reason why everything on the TV looks almost unreal is because we're so used to watching films and whatnot playing at 24 frames per second, which is the reason why The Hobbit in high frame rate (which was actually just 48 frames per second) looked like everything was popping out. In games, unfortunately, you will not see this kind of difference because most of the time you will be playing with (ideally) 60 frames per second or higher. It would only be useful for those extremely high twitch games where you need every single frame rate to count so that you can aim very precisely -- but the average casual gamer will not see much of a difference IMO.
PS: this is just my opinion, not hard fact. Some people may actually see a difference with the 120Hz monitor -- I, on the other hand, do not see much of a difference.
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