People are getting a little overexcited about the Cerny interview.
I think the whole raytracing thing is being overblown here. There is no way you can get full ray tracing hardware into a $400-$500 console. My guess is when Cerny talked about ray tracing and sound processing basically in the same sentence, he was thinking of some ray-casting solution for sound. Done by maybe something like the Tensilica chip inside the XBox, sort of a Tensilica+. "Sound casting" is it if we want to invent a new name. This would essentially give "Sensurround" to consoles.
As for the magic ssd, I don't think there will be a terabyte(s) ssd (again, price matters), I'm thinking there will be a really fast ssd buffer in the 128G range, enough to "turbo-"stream enough graphics, and so there won't be any need for more than 16-20GByte of ram.
Again, the SoC alone will probably be in the $150-$200 range, there is a limit to what you can build with the rest, given monetary constraints.
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