Actually its 60-100%.

Otherwise why wouldn't they have implemented features such as Co-op?

All this MSFT announcement does is acknowledge that KZ2 graphics are better than anything currently out on the Xbox360..
If I was the Microsoft guy I would have kept my mouth shut..

Im not an elitist. In many ways I like games which reach a large number of people and entertain them rather than some niche wet dream. Its all about numbers, its a good feeling knowing how much enjoyment games like Halo 3 have given the world.

CPU isn't the only bottleneck. What about memory, or concurrent access to streaming data if aggressive memory reclaiming is done.

Uhm, getting up to 100% would bring some very unpleasant problems especially on heterogeneous platform. That said, I doubt there will be any games that will use 100%. Co-op? Uhm... Maybe they just didn't want to or have time to make it in this iteration? 60% SPUs power = prolly less than what X360 can do. (Even better? :) )

I think the main problem Microsoft has trying to match a major budget title like Killzone 2 is Disk size. While Sony can pour money in and develop more and more art assets, MS has to repeat textures, and figure out how to save space. Disk size almost certainly limits the length of the game (if its striving to be graphically impressive), and the amount of unique art assets that can be used in the game. Kind of makes sense why the devs would try to compensate by adding modes like split screen and co op instead. If MS has a game that can match Killzone2 graphically, how long is the game, how often are textures repeated, and how many disks is it on? I really doubt it will match up to killzone2 in all these respects.

If the OP is true: Why are people still arguing that Gears look better than K2 when M$ themselves more or less admits it doesn't?

Why is it whenever a 360 fanboy is in an argument on any topic (and not doing very well) they bring up sales?

Why haven't we seen better than K2 graphics from 360 when the console has over a year head start and is far easier to program?

I think the very fact that MS are releasing statements like this means that it is unlikely that they will graphically surpass KZ2. Here is hoping I'm wrong, i think its important for gamers that both companies keep pushing each other and they can both keep up

Wake me up when they get to the gfx of Uncharted and MGS4, then I'll believe it. KZ2 will prolly be there Max in 3 yrs time.

To truly enjoy console graphic wars you must be PC fanboy. Then you can observe it from proper perspective and have a truly amazing fun doing it :D