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You can never max out a console, you can just get to a point where the only updates you can with a new game are so small and meaningless that there isn't much point in doing them. Like if Sony Santa Monica were to do God of War III on the PS2, it would only look very little better than God of War II, because it already pushes the console so much.

And I think it would be at least 3 years before a PS3 developers get's to that point.