Really http://www.xbitlabs.com/news/cpu/display/20060713074825.html That is a press release from IBM supporting what I said. Although you were right about it being the 9th processor that was special. If you are gonna claim someone is talking bullshit, the least you can do is give some links supporting your claim or atleast look up what I was talking about to see if I confused a press release somewhere.

Lets use Lair. 20,000 feet view as well as the one meter level view at pretty much the same detail. Huge world bubble and that can be 32 kilometers by 32 kilometers. Maby thousands on soldiers on the ground, hundredth dragons in the air. Go above the city and then basically go seamlessly from air to ground. All of its light in real time, and the atmospheric calculations. Fluid dynamic simulations in the water. Extensive streaming = Gears quality graphics.

 You mentioned racing games, take Forza 2 for an example, it's physics engine runs att 360 fps, that takes alot of CPU.

 Nope, you are getting it backwards: The Cell has ONE normal core (the PPE) and 8, the SPE 7, SPEs that can best be described as Coprocessors and one of these coprocessors can be switched into a locked state to handle secret keys. To get an overview of it you could simply read:

http://en.wikipedia.org/wiki/Cell_microprocessor 

Apart from tons of units on the screen... I haven't noticed any non-graphics advancements either. AI seems to be just as stupid as before and any physics advancements have been pretty meh...

Ugh, when you are talking about confusing things, you should really make sure that you check your grammar. I don't usually care that much, but when I am already having a difficult time understanding the concept, bad grammar just makes it impossible. I am gonna look at that link though.

Oh I think I figured it out.  Are you saying that it has 1 PPE and  8 SPE.  The PPE directing the SPE? and that one of them could be locked to handle specific tasks? Which is kinda like what I said in the first place only it doesn't detract from the over all processing power?  Is that it?

There is NOTHING more than graphics that all this superior power adds. Most people that answered anything other than graphics here just don't know what they are talking about. This myth will likely go on though. AI is not bound by processing power at all, AI is bound by memory space and a good algorithm, and also a good automata. Neural networks are complex evolved automata anyway, that have lots of memory. The Wii can handle all that just fine, but it will be limited by the memory allocated to it. That doesn't mean that it will be more limited in AI than PS3 or X360, as these need more memory for GRAPHICS. Physics are entirely possible on the Wii too, on the exact same level as the X360 or PS3. The only limitation, is once again, GRAPHICS. Because even if the Wii can compute the behaviour of thousands of zombies just the same (nobody does that, as that would be a PRETTY BAD and STUPID algorithm), it can't display them all unless it cheats. Loading times: one of the worst BS I saw there. Loading times are not bound by processing power at all. The Wii has less loading times than both PS3 and X360, and the GC had even less. Sound: again, one the worst BS I ever read. My wife was scared by Zelda TP sound from behind. This is entirely dependant on your sound setup and the sound design, not on your console power. So basically, the added power in the consoles, compared to the Wii, only brings better graphics, that's all. You will see that every answer already posted, and to be posted, is actually GRAPHICS in disguise.

What is AI?

I don't think so, because why then are there so many people talking about how games like lair or Dead Rising allow for 200 zombies or 1000 soldiers onscreen at any one time. Processing power can not be part of graphics because why then are the 360 and PS3 graphics virtually identical?

AI = Artificial Intelligence PS3 and 360 games look the same cause they are not specifically optimized for one over the other. Also the 360 and PS3 have similarily fast CPUs and GPUs.