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Ok guys, you're missing the whole point here.

1st, Console game industry is more profitable due to low piracy, they have better artist, etc.

Consoles, PS3 is based on nVidia 7800 technology, which can't do DirectX 10, Xbox 360 is based on ATi X1800 which can't do DirectX 10 either. Additionally nVidia 7800 technology can't do AA (Anti aliasing) and HDR at the same time. But Xbox 360 can. Ok, either ways, in that generation, AA was a luxury, not a requirement like in nVidia 8000 series, and Radeon HD 2000 series which is the generation directly above the technology PS3 and Xbox 360 uses.

With that said, the only reason you don't see an evolution that great in graphics is that Consoles are hindering PC's. Multiplatform titles specially. There's no console that can do DirectX 10, and have you seen a PC title that benefits a lot or differentiates that much from the latest console titles?

I'll leave the answer to yourself.

Till the next gen of consoles, we will not see a lot of improvement in the graphics department in all platforms.

And BTW, I'm a hardcore PC gamer that think Crysis is shit. And yeah, I can play it in Very High with nice frames. Looks pretty, that's all.