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For those that are making comments like "With PS3 and 360 now going to have motion control, then we're not really going to see much a jump in graphics next gen."

Actually, it is true that Sony and Microsoft do seem to be embracing the motion tech philosophy in an attempt to increase their systems sales; however, that goes against many of the ideas of customers that have bought PS3 or 360 so far. Many people that bought those systems so far did so because they enjoy much better graphics in their console but they aren't rich enough to be able to go out and buy pcs every couple of years to keep up with the major jumps in pc graphics.

So what happens to the roughly 50% of gamers that prefer better graphics to better controls in their games when the next gen rolls around if Sony and Microsoft aren't trying to have consoles that can hang with some pcs in the graphics department for the next five years?

It could leave the market wide open for those that want to make systems capable of much better graphics as occurred when 3DO entered the market ( and 3DO could have become a much bigger player in the industry if Sony and Sega's own super graphics machines weren't released so close to the 3DO's release).