I loved the presentation.

A part of me imagines those conversations went something like this:

Third-Parties: "Gotta make real life look bad, yo."

Cerny: "That sounds expensive."

Third-Parties: "Dis SONY, right? You guys got da munnies."

Cerny: "Last time we launched with a $800+ system, that didn't go well. We actually lost a lot of money. What you're asking for sounds like something in the 1500 range."

Third-Parties: "Sell it for 4. Let da games make da money. Just make sure dem games be lookin beautiful."

Cerny: "*Sighs*... we'll see what we can do... and... uhh... we'll keep in touch, Mr. Yerli."

One PS3 has 2 teraflops. They wanted the power of 1000 PS3's?
That would be 2000 teraflops (2 petaflops)

Currently the fastest supercomputer is 33.9 petaflops
The 10th fastest supercomputer is 2.5 petaflops, has over 180,000 cores, and cost $88 million to build.
The PS3 has 8 cores. and 0.002 petaflops.

If you are telling me that third parties want a console with power comparable to a several million dollar supercomputer that takes up several square meters, then either third parties are way more stupid than I thought they were, or this Mark Cerney guy doesn't know what he's talking about.

Sure, third parties wouldn't mind developing for a million dollar machine, but there would be next to no consumers.

He was being tongue-in-cheek.........................................................not to take literally.  -__-

Damn, I was trying to look smart. 

Lastly Cerny added that these developers "didn't want exotica", and that "if there was a GPU out there that could do real-time ray-tracing they did not want it in the PS4."

Though such technology would be "fascinating", said Cerny, the development teams would need to rebuild everything they knew from scratch just to make use of this GPU.

Oh well, wake me up in 2020 for next-next-gen. And this exotic gpu? Nvidia Cuda can do path tracing with the Brigade engine, just not enough oomph yet. Maybe an indie dev will be brave enough to do a 480p arcade path traced game, a glimpse of the future.

does anybody have a link to the video of the interview? i cant find a video, just an article

This is one of the best posts I've seen in a while. Beautiful. :D

http://kotaku.com/how-the-ps4-came-to-be-609893745

Where did you get 2 TFlops? It's 176 GFlops for the GPU + ~100 GFlops for the CELL, maybe you were thinking single precision numbers and with Nvida's bullshit numbers but even then it wouldn't be close to 2 Tflops, hell the PS4 is barely 2 TFlops. Not that 1000x would be any more possible, and that comment was clearly not serious.