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Experimental42 said:

 

Power isn't needed for innovation, and innovation clearly trumps power when done right.


This isn't anywhere close to correct. Power doesn't lead to direct innovation, but a lot of new things demand computational power to be done. Open world games, proceduraly generated enviroments, new sound tech, new animation, new physics. This changes the way games are played.

PS2 allowed GTA San Andreas to bring a massive living world that the PS1 couldn't push. PS3 power allowed God Of War 3 to redefine scale in gaming because it had the power to do it (Santa Monica had to scrap their plans for a huge Kronos in GoW 2 because of lack of power). PS4 and X1 will start bringing innovation as physics and destructible enviroments, more player in online games and a more social sharing oriented gaming experience.