>This is the reason that next Xbox needs the Tegra 8. The Tegra
>3 looks better than a PSP. Smartphones caught up graphically
>on the high end. It's going to take a lot to convince the
>consumer to shell out $700 for a console and games.

No integrated chip can compete with a dedicated GPU. Yeah, it may look fancy in tech demos, but real world applications? LOL. It's why on the PC we are decades into the tech and it still sucks compared to $50 dollar discounted GPU's. Cellphone's are like at BEST 5 year's behind...notice you said PSP and not Vita. And still the frame rates you get on them suck...you're lucky to see shit in 30fps. (and we won't get into the dumbed down gameplay)

>Then again anything is a step up graphically for a 360 owner
>after the debacle that was early 360 games.

Still pushing the 360=PS2 and PS3=dah God nonsense? Id argue that graphically this is the closet generation graphically we've had between the leaders ever. The ports are indistinguishable, and the exclusives (Uncharted 3 vs Halo 4 for instance) have the same high quality.