did not read the whole thread... but IMO, next gen( if 1Q 2013 launch) consoles can easily be around 5 to 8 times more powerful and cost around 400$ /euro at launch... Sony for example, can put a ps3 CPU and other CELL CPU (new, more PPUs and a lot more SPUs) (as they can work together with a scale performance chip to manage the information path between the two CPU; example: in a game PS3 CELL deal with 20% of the workload and the NEW CELL with the rest) and by doing that BC is hw based with no SW to deal with the huge complexity of the PS3 architecture. GPUs are leaps and bounds ahead of what they use in the current gen and with lots of better performance per watt... the usage of 8 times more RAM and vRAM than the current gen will also give a huge overall performance boost... all of this can be achieved with the price and power i talked above and keeping the power usage under 200 watt for the launch model!
but hey... its only one idea of the endless possibilities... but i am quite sure sony and MS will do a good gob and their consoles will be much more powerful than 100% more than the current gen because this is a multi billion dollar business and power is key in this business...
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