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The PS2 was actually underpowered compared to the Gamecube.  The reason why the gamecube didn't do so well, was its selection of games, JRPG, and the rising online FPS market was increasing and Nintendo didn't accomadate to that.  The Gamecube used a power PC based chip, which we are beginning to see in all consoles now, even the Cell processor is based off IBM PowerPC technology.  This allowed faster access from the RAM to the CPU and same with Video chip.  The Xbox 360 also uses a PowerPC chip.  That was the reason for it overheating.  The particular chip, based off the G5 architecture was prone to overheating and is the exact reason why Apple switched to Intel.  Notice how no laptops used the G5 chip?  It wasn't because X86 was faster, since it isn't and that is why we don't see any X86 consoles anymore besides from the original Xbox which didn't do so hot.  Though it did make a good base for emulation.  The gamecube ran games at a faster frame rate, and the cross platform games had slightly more detail and better AA on the gamecube.  Also, http://www.youtube.com/watch?v=bUz2WMJKdTQ   The gamecubes processor ran at a higher clock, had quicker access to the hardware, and could do some great things.  Just bottlednecked by the Game library and the type of Disc the gamecube used.