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PS3 didn't fail to have the grunt. Sony took it out to continue selling PS2's. And it wasn't a cost-cutting measure at all. The Emotion Engine is cheap to make, they just took it off the PS3 mainboard to keep PS2 sales strong. And it is still selling decent. PS2 just had a hardware revision like last year...put the power supply on the console instead of the brick.

 

NGP is 2 generations away from PS2. I think they will honestly.