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As I said, those specs are laughable and it's obviously fake, but let's imagine for a second that they were true.

People would laugh Microsoft in their face.

MS would be a pathetic 4 years behind in trying to "do a Nintendo" (Wii launched late 2006 - this 'only-twice-the-power-of-X360' console would launch in late 2010). MS would be run over by Sony's hardware powerhouse PS4 within a couple of years and lose all of their hardcore audience.