Care to elaborate on those features?

Kinect?

Graphics wise, there isn't that much more juice the dev can bring out of the box.

Ahh i understand he must be talking about prices of live subscribtion that haven't reached limit yet ;)

So long as theres enough easily extracted performance I would rather the developers work on making better games. Luckily for me this is the case, they have had a dose of sensible injected into them.

Peter only has homself to blame for when a lot of us take his words with a pinch of salt. Maybe he meant in a creative way there is much more to be done with the 360. Or maybe his team haven't reached the limits of the 360's technical potential as let's face it, Fable II (and most likely 3) is by no means the worst looking 360 game but definately not the best. Though personally I like it's large expansive worlds, charm and gameplay.

this.

Isn't ignorance bliss... not a single developer has used the VMX units on the system and from what Corrinne Yu said there is a ton of untapped potential.  I'll see if I can't find the videos and link them

http://channel9.msdn.com/shows/InsideXbox/Corrinne-Yu-Principal-Engine-Architect-Halo-Team-Microsoft-Part-One/

http://channel9.msdn.com/shows/InsideXbox/Corrinne-Yu-Principal-Engine-Architect-for-Halo-Team-Microsoft-Part-Two/

It's more then a bit on the technical side but she talks about everything including the PS3 and the benefits of coders being  forced to work on the hardware and how that makes their games better on the 360

It is difficult for FPS games to be revolutionary unlike other genres. Hell, IGN lists both Modern Warfare and Modern Warfare 2 in the top 25 Xbox 360 games.

Speaking from a single player experience, both Modern Warfare and Modern Warfare 2 are nothing compared to Far Cry and Crysis, in my opinion. The campaigns sucked and only offered one way to approach the mission, guns blazing.Far Cry and Crysis offered all sorts of approaches, same as Crysis. You could go in Rambo guns blazing, stealth, or avoid the enemies altogether. My only complaint with Crysis is that it was too short and delved into the alien shit way too quickly. I wanted 2 to 3 more levels sabotaging the Korean army.

As for multiplayer, the only FPS series I trust to do it right everytime is Battlefield.

I'm going to side with Crytek on this one concerning the graphics and hardware limits. I'm pretty much convinced Gears 3 and Killzone 3 will be at the top of what each respective console will be able to do. Uncharted 3 isn't going to look much better than Uncharted 2. We're looking at4 1/2 years into the PS3 at that point and 5 1/2 years into the 360 lifespan. Any graphical improvements from here on out on either system are going to be minor. I believe next gen is only a couple years away.

Well said. 

Off topic: You need to get a couple months of Live so we can play some campaign or firefight in Reach.

My internet connection is less laggy, wanna give it a go?