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One of the nicer things about consoles being able to update their OS/Firmware is that (hypothetically speaking) any of the console manufacturers could make it so that a game could run on their current generation system with low-detail graphics while the next generation system could have a high-detail version of the graphics. This is a lot like how PC games work, and should allow for some improvement from buying the next generation system while still preserving support for the current generation system.