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There will be more programs like "milo" on 360 but on the next gen they're much more polished and work better.

developers are reaching the peak of graphics, soon we can't even see the difference with game graphics and real life. (well game graphics will look better with sharper image and more color :P)

I think they're only gonna start increasing power so that they can have a lot more stuff in games without framerate drops. Also the price of the consoles propably won't be as expensive as this gen since people keep on finding cheaper ways to produce parts.