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They sure can, infact first few PS3 Dev kits were even clocked 1ghz 800mhz lower then the cell in the consoles. Almost ALL dev kits have more ram then the retail version. Thats why running games in developer mode on xbox required some soldering.

 

According to Masaichi, these kits currently run much more slowly than the finished hardware will. The finished Cell processor will run at 3.2GHz, however the current kit CPU only runs at 2.4GHz currently. The GPU in the kit is allegedly not the RSX, but is a chip that is said to be a slower approximation that runs across a PCI-e bus. It's probably a safe bet that, based upon Nvidia's unveiling of the GeForce 7800 earlier this week, the GPU is some form of that chip.

http://www.edge-online.com/news/ps3-dev-kit-details

New Xbox 360 Dev Kits with 1GB RAM, X-Engine
[QUOTE]
You may not know it, but Microsoft shipped a new Xbox 360 development kit to studios earlier in the year. One striking difference was the inclusion of one-gigabytes of RAM. No, this does not mean that Microsoft will be releasing a new Xbox 360 with more memory; the new kit instead makes development a little easier.

Like the PlayStation 3 1GB development kits, the extra memory can be used to properly test your game. This was a problem for Xbox 360 developers before now, since extra memory from the 512MB pool would have to be put aside to test their game engine. Developers could of course disable these test features in order to use this spare memory, but that would mean that they wouldn't easily be able to test their game.
 http://www.xbox-scene.com/xbox1data/sep/EkuVApEVkkrKedVBmY.php

 

I Stand corrected, PS3 and xbox360 both have 1GB dev kits. Either way these extra 70 mb of ram are going to be used for games to run games better ->Fact .