HappySqurriel said:
To maintain that large of a gap Microsoft would need to be using one of the top of the line GPUs that alone use more than 150 Watts. There really is only 1 GPU on the market from AMD that can offer 8 times the performance of the XBox 360 and has low enough energy consumption to be used in a console (The Radeon 7970M), and that would only maintain the advantage Microsoft had if you assume that Nintendo didn't choose one of the many laptop or embedded GPUs that can offer 2 to 3 times the performance of the XBox 360 under their size and cost constraints.
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A chip which is a little slower than the HD 7850 would deliver around 8* the GPU shader performance of the Xbox 360 and on a mature 28nm process that is pretty plausible. They can easily devote a large proportion of the power budget to the GPU because the CPU in the Xbox 360 was a dog in comparison to current designs in performance/W such as the jaguar cores from AMD which only use a few watts per core and deliver better performance. The rumoured inclusion of low power/high performance CPU cores and memory architectures (DDR4) means that they can devote more energy towards putting prettier pictures on the screen.
I doubt that one single 250-300mm^2 die in would break the bank in comparison to the dual similar sized dice the current generation consoles launched with and the use of generic technologies like DDR4 and Blu Ray ought to control costs further.
Tease.