Everyone knows GDDR5 RAM is more beneficial for GPU memory. System memory however is actually better off with DDR3 RAM due to sligtly lower latency. 

In terms of next gen console GPUs, below are the specs:

PS4 GPU Cores - 1152

Xbox One GPU Cores - 768

and

PS4 Peak Shader Throughput - 1.84 TFLOPS

Xbox One Peak Shader Throughput - 1.23 TFLOPS

Xbox One GPU has 33% less cores and 33% less peak shader throughput. Due to this, it needs less video bandwidth than PS4.

This leads us to video RAM:

PS4 Video Memory Bandwidth - 176 GB/s

Xbox One Video Memory Bandwidth ( DDR3 + sRAM cache) - 102 GB/s

Xbox One would not benefit at all from having 176 GB/s GDDR5 bandwidth due to lower GPU throughput. If they gave the Xbox more GPU cores it would be a different story however its RAM bandwidth is perfectly proportional to the GPU performance.

Its no secret that Xbox One has a less powerful GPU, but because it skipped on GDDR5 memory it can enjoy better system RAM, much less power consumption and heat, and cheaper manufacturing cost.

Just an FYI to those that say Xbox One is at a disadvantage for not having GDDR5 RAM.

In my eyes, less isn't more.

Is that why the launch price is higher?

They needed a chance to ship a defective product like the x360, with the over heating sRAM they will be able to outsell the PS4 since people will need to buy multiple X1s, Microsoft are genius Sony are not so smart since the PS2

Moderated - Kresnik.

That's due to the Kinect camera, and the ESRAM increasing the SoC size.

WHAT??????????????????????????????????????????

If you want 1080p 60Hz games (and this is the target for both consoles), you need a frame buffer that can handle the data transfer. This defines the minimum video bandwidth you need. Everything above the minimum helps you for better textures etc.

And fyi, 8G gddr5 1.25V needs LESS power than 8G ddr3 + 32M esram. And fyi2, gddr5 ram is actually easier to put on a mainboard than ddr3 ram.

So spelled out for you: gddr5: less heat, easier cooling (you will be surprised once you see how "simple" the cooling in the PS4 looks), less board complexity, faster memory throughput overall = more options.

DDR5 is the new CELL

same shit, different gen

Ok, if you say so.

Feel free to read this and post again if you'd like...

http://www.vgleaks.com/durango-memory-system-overview/

It's still $100 more for a console with less power (at least on paper).

Considering GDDR5 RAM (DDR5 RAM doesn't even exist yet, DDR4 has almost no marketshare) has been used in PC's for YEARS now - no, it's not the new cell, not by a far shot.