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I think it's simple:

For the XBox, they're at the limits of the console, and now trying to squeeze anything out of it to meet their needs as much as possible.

For the PS3, it's harder to develop, so there's still a learning curve which turned out to be steeper than they thought at first.

I think MS would be a bit pissed when the game would look and played better on the PS3, and sony would be pissed if they didn't use the powers of the PS3.