"This engine can't be run on the PS3 or 360. "
The engine could be run on consoles but they would have to reduce the details that is correct.
Again I am not saying that PCs are not more powerful. Bigger RAM and much more powerful graphic cards mean better looking games.
But again physic simulations (and other number-crunching apps like video decoding/encoding, audio processing, upscaling etc. pp.) are an exception. Here the PS3 is simply more powerful because these are the tasks that are much more efficient on Vector-processors (which is essentially what the Cell is).







