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Wagram said:

It will probably be even lower next generation as well. Technology was rapidly advancing before and it's not doing so much right now due to lack of significant breakthroughs. I expect better tech within the games themselves though like better AI, mechanics, gimmicks, fps, textures... etc etc


Definately on the processor side of things, the new hasswell processors give you 10% better performance (50% on graphics, but the bar was low).  I remember when each processor generation was a huge leap giving you multiple times the power.

Graphics performance will take a few more years to plateau.  Already the hasswell chips are comparable to mid level AMD cards, two more cycles and they will be on par with this gen of conoles.  NVIDIA should have a SoC with graphics comparable to this gen of consoles by 2015 so tablets will have caught up.  There is not much more room to grow, the big size leaps are done (22nm to 16nm is a small shift), further size leaps are more about power efficiency than huge gains in performance.

GPUs will be marginally more powerful than today's titan with time, but they are reaching some hard physical limits right now.  Like the multi core cpu's it may be that multiple GPU designs take over, but agian this is a game of diminishing returns.

All in all next gen will have an even smaller leap in graphics.