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I really don't know what I would do with the extra budget, a console isn't a PC and I wouldn't want anything perversely powerful or capable. If you were to ask me the console would have Gen 6 level 3D graphics (PS2/GC) with a custom processor and all that, but output to HD and support stereoscopic 3D. And with a special chip used exclusively for 2D graphics with some special modes and quirks.