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curl-6 said:

PS2 was simply not as capable as GCN or Xbox graphically. Shading wasn't its only shortcoming; it has less RAM as well, and no hardware texture decompression.

Compared to Xbox ? Definitely! Compared to GC ? The difference was always over exaggerated to begin with ... 

It certainly does look like the PS2 may have less memory but at the same time it had more USEABLE memory for the developer compared GC when you take a look at the fact that 16MB was dedicated to audio and mini DVD drive purposes. Your right about the GS not having hardware texture decompression though ...