DUALDISASTER said:that 500 million poly count for the 360...isn't that with the 360's gpu rendering poly's with no textures or pixels?
No, 500M is the setup limit just like the 275M is the RSX setup limit. Xenos can setup 1 vertex/cycle (500M) or 1 vertex every 2 cycles when tesselating (250M). As Megadrive said, the exact PR-phrase was, "500M with non-trivial shaders" or if all 48 ALUs were dedicated to only vertex processing (and not setup limited) it is in the 6B range (G71's Vertex Shaders are in the Billion range as well).
Of course this is all assuming no limits on bandwidth or memory footprint. I don't think we will be seeing 500M poly/s games; but what has been said is that the poly counts this gen are more reasonable in regards to screen output. Xbox1 had PR-speak of 100M+ tris/s, yet games were probably at about 10% of that. The Xbox1 PR numbers pretty much assumed minimal effects. This gen the GPU itself can push that many triangles, the problem is whether the rest of the system bottlenecks can achieve this and whether this is the best budget of resources for a game design. So far games have been decidely pixel heavy and have used normal mapping and parallax occlusion mapping to fake geometry and shadowing/lighting.
On the other hand we have seen geoemtry increase this gen. Of the few non-PC ports, I think PGR3 is a good example. The cars were in the 100K range (of course much of this was culled/non-visible) and some of the world assets had staggering polycounts (e.g. the Brooklyn Bridge). Likewise a game like Kameo had 3K individial characters on screen and we have heard of massive GPU-based particle systems (1M particles).
Whether or not the setup limit will be an issue is something developers can tell us more about. From a technical standpoint, having a high setup limit could be helpful for situations like a Z setup or shadow passes as Dave mentioned. It would be nice to get some more direct information on vertex shader processing and setup limit in regards to vertex bound segments of a frame's rendering. I know Robobo (sp?) has some nice slides showing a typical frame's rendering, it would be nice to get more information on what is happening when and what it is being limited by.