Xbox Why Do The Textures Look Strange When I Move The Camera Away?

When I move the camera away from my train the textures lose quality and the headlights lose their perfect shape. Please explain what may have caused this.

 

LOD - the level of detail, reduces on models the further away they are in order to reduce the amount of computer power needed to draw distant objects. It is quite harsh on consoles with the LOD reducing quite close on some things. I think the different levels are automatically created for some aspects, which is why circles don’t form regular polygons as they get lower in detail, instead they form awkward shapes that are horrible to look at. The same thing applies to how detailed textures are.

 

This might be because the 1442 hasn't got the greatest textures