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Pemalite said:

How would it be overkill?

An AMD FX 8-core chip at 4ghz can still loose to an Intel Ivy-Bridge 3.2ghz 4 core chip.
In CPU design there are things more important than the amount of cores and clockspeed that determine it's overall performance.

Well MS have to choice THE BEST or THE CHEAPEST... choose AMD.

And a 8 cores running at 2.4Ghz will be overkill for consoles... even the 1.6Ghz is great.