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Where are the facts?  I'm pretty sure it was recently compared to an original XBox powerwise!? 

I'm pretty sure I saw a comparison somewhere that said the Wii was significantly more powerful than the Xbox (in particular had much more RAM?). Now I think about it the 3* figure might have been about the GC though, was wrong on this one =(

I personally disagree.  MP3 looks good but looks so last gen to me...nothing wrong with that though.  SMG looks good and great fun, but graphically isn't anything to shout about.

SMG has been lauded by previewers as looking as good as the best games on the PS3/360. I think it is something for the Wii to shout about.

I agree that the 8th generation of home consoles or the next next generation will not be a huge advancement of this generation.  It's more like to include better interaction accessories rather than graphical or power advancements.  "Cell" it depends.  If the PS3 ends up being a good seller over its lifetime and ends up a close 2nd or 1st, then Sony could very well stick with Cell as developers would be used to building games on this platform and it wouldn't then be a huge cost and time to develop new engines using new processors. 

The Cell isnt really suitable for gaming (from what I have heard, Im not actually a dev XD) so I think its likely that next gen they will go back to using more standard processors that make it easier to develop games. I will think that even if Sony does win.

I agree, that I think the Wii will end up the winner as such around 2012 or so but not by a huge margin. "Cell" processors being hard to code is all relative to the amount of time dedicated to learning how to use it.  It's pretty obvious that loads can be done using the "Cell" and dedicated exclusive games are demonstrating this.  Once Sony releases better support and the better developers sell their engines, we should see easier development of games on the PS3, although it may be another year before this happens.

Loads can be done using the cell when you put loads of time in, more than anybody has put in yet. Lair failed to deliver, HS had too much time put into making it look pretty and not enough into making it long.
Really no game has taken advantage of it yet. So far the only 90+ game on the PS3 is Oblivion, which is a 360 port.

Totally correct, that is why some developers are using the Wii and DS to create a good revenue stream for their businesses.  But it certainly won't stop them creating games for the 360 and PS3.  We will though see more multiplatform games especially between the 360 and PS3 and maybe we will see more exclusive 3rd party games on the Wii than any other platform.  But the quality has to certainly get better.

I don't see why it wont stop them creating X360/PS3 games. "Oh, here we have a bigger user base that we can develop AAA games for at a cheaper rate. Why dont we make games for someone else?"

If the Wii keeps on rolling and manages to eclipse the 360+PS3 userbase expect there to be fewer X360/PS3 games. 

I am unsure how many 1st party inhouse development teams Microsoft have, but maybe this is why Sony are buying up a few smaller development houses to enhance their already good 1st party inhouse teams.  So potentially for the foreseeable future, the PS3 will have to rely on 1st party developers for "exclusive" titles, but they should see a higher number of multiplatform games in the next few years...and with better development tools, 3rd party developers should start showcasing the PS3 rather than multiplatform games being inferior on the PS3 than the 360.

Where do you get this idea about better Dev tools from? Is there news about it or something?

Anyway the reason why games are often inferior on the PS3 is because its the smaller userbase = they dont think its worth spending the money on.

Oh and it is possible to survive on first party as a company (see Gamecube) but I don't know if Sony will be able to do that as they require large hardware sales to make a profit.