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arsenicazure said:

Agreed.. but if it was cost that was killing developers, PC gaming would be dying too.. which it is not, its growing. PC gaming and HD gaming will always have a synergistic effect on the other.

Resolution however is just a simple measure of improvement there are far more measures:

-no. of effects of screen
-improved AA
-improved physics
-number of characters on screen
-more polygons
-improved texture quality
-improved A.I.

Anyone who has seen yakuza 3 will be amazed at the graphics but also at the lack of animation prowess. Games will undoubtedly look better. Doom3 looked like the best thing ever in 2004 and now we have crysis. with the next generation atleast 3 yrs away the industry will probably triple the performance the intel corei7 provides at a quarter of the cost.

in terms of success,the 360 still sells more software per console than the  wii hardware.. If only hardware was a measure of success wouldnt the PC be the perpetual eternal winner here?

Doom 3 looked like the best thing ever when it was a tech-demo in 2002, but by the time it was released in 2004 it wasn't that impressive anymore ... Games like Far Cry and Half Life 2 were also released in 2004, ran on fairly modest hardware (2GHz Pentium 4s and Geforce 4s) and are not that much different looking than the games being produced for the HD consoles.