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I was thinking about this on the way home. When the PS4 and 720 come out, how will MS compete with Sony's box?

Sony has paved the way for the future of the PS. The Cell and distributed programing. The beauty of this, is it scales incredibly well. As the tools to use the PS3 Mature, they can easily be utilized on a multi Cell CPU design. This is just a guess, but the PS4 will probably just have a few Cells in it. It's very power efficient, and by the time the PS4 comes out, should be relatively cheep to make. plus, if you use Cell CPU's, you can BC to the PS3 easily.

Now, what will the x-box use? This is something expected in 3-4 years. the fastest Intel or PPC CPU released in the next 3-4 years will not compete with 3-4 Cells. It will also cost a ton. Whatever MS does, it won't be cheap, and it might not even come close to the performance on the PS4.

The PS3 is the beginning on the technology is represents. The X-Box is at the end of the life of the technology is represents (the PPC).

I think this might be MS's biggest hurdle for the future for its console gaming devision.