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The percentage of theoritical performance used in game is mainly meaningless marketing speak ... Rarely does the number quoted have any attachment to reality or represent anything meaningful in terms of graphics, physics or AI.

With a system like the PS2 it was able to produce far better looking/playing games later in its life more often because developers found a work around or hack that allowed them to implement a version of something with far less processing power; late generation PS2 games that looked close to XBox and Gamecube games used similar ammounts of processing power as the early PS2 games that looked worse than Dreamcast games.