Squilliam said:
Xbox 360 volume: 6,600cm^3 Wii U volume: 1,200cm^3 Xbox 360 production cost at launch: North of $300 Wii U production cost at launch: South of $300 Cost per area of silicon: 28nm > 90nm in todays currency at their respective launches. You can argue all you want about how great the Wii U could be. The physics don't support your argument, nor do financial constraints. If Nintendo were producing a console which cost $500 your arguments would start to make some sense as you could consider things like vapour chambers for cooling and more liberal use of chip binning. Chances are good they are using DDR3 for cost and power reasons. Chances are good they aren't putting >300mm^2 of silicon into it. Chances are good they are setting the clock speeds at a level to maximise yields and reduce costs. Chances are good that they will employ a standard cooling solution. Chances are good they won't let the chips hit 90 degrees C as has been typical of laptop designs.
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You're making a ton of assumptions, and then using those assumptions to make your conclusion ...
In theoritical floating point performance the Cell processor in the PS3 is several times as powerful as the Xenon processor in the XBox 360; and in real world in-game performance the two processors are fairly similar. While processors are ultimately bound by their theoritical performance, how well suited a particular processor is to running a particular application really determines the performance of that application on the processor; this is why DSPs with several orders of magnituded less theoritical processing power can often outperform high-end CPUs in tasks like video decoding.
While the Xenon is a good processor it is far from the be-all and end-all of gaming CPUs; even using the same manufacturing process on the same size of silicone die running at the same clock-speed, a processor could be produced that is substantially better suited to modern games than the Xenon and have substantially higher real-world performance. Although I wouldn't expect Nintendo to do this, you could create a co-processor for dedicated physics that wouldn't be substantially more expensive or power hungry than a Radeon HD 4650 and off load a substantial amount of the work off of the CPU and increase overall-performance; and, with AMD's hybrid crossover technology, it would make sense to use a low end GPU as a physics processing unit to allow it to be used to enhance graphics for games that are not heavily physics based.
Nintendo doesn't have to break the laws of physics, they simply need to design a system that is better suited to gaming than the XBox 360 to see substantial improvements in real world processing power.







