Didn´t Microsoft go that route with Xbox?
It became a very expensive experience in the end.
No. Microsoft owned the box and the OS, their fatal flaw was to have no control over the CPU/GPU IP.
Furthermore, Xbox had one of the most advanced GPU at the time, adding 'some features' over the Geforce 3 and succeeded greatly by the Geforce 4 architecture.
I also seriously doubt your statement: "superior results (far more than 2x) at a lower launch price than any of these generation of consoles had."
Well its mathematically certain. There are current GPUs that are several times as powerful as what we see in consoles. Compare the 9800GTX+ to the RSX for instance and see how 'cheap' it is for a PC component. In 2011 or even more extremely 2012, there is no doubt that that if a console launched with that level of hardware (plus any any proportional increase in RAM and CPU), the manufacturer owned the chips, even more so if they decided to further shrink the dies, we'd be seeing architecture that is not only reasonable in price, but dirt cheap. whilst being several times as powerful.
We're not talking £260, £300 or even £425 launch prices, we're talking >=£130 & <£200 that is less than what people have been paying for consoles in the 7th generation,and guess what, the prices will only get lower in years after launch.
You are also overlooking the cost for developers to move to a completely revamped platform, Nintendos Wii approach was pretty cost effective with regard to that.
False. I did not make any statement concerning developers. Its already a fact that every generation, capacity has to be increased to accommodate new hardware. However, we also need to factor in the ideas 1) middleware has taken off big time, 2) it could be the first generation where developers move to a new architecture with the same instruction sets and basic 'way of doing things'. I predict current h/w experience both in architecture and styles of programming (i.e. parallelism) will be very transferable to 8th generation hardware.
On Nintendo, if for Wii, they similarly used a PowerPC varient CPU except something a little meatier like a low Radeon X based GPU, developers would not be complaining about difficulty in development so I think that is irrelevant. Performance would be superior to GC, yet in price it would still have trounced its rivals, Nintendo just would have not got quite as huge profit from day one (still no losses).
I also believe that the talk about that we are approaching diminishing return with regard to graphics fidelity is getting more and more true. When the PS3 is able to output KZ2 level of graphics in the beginning of its third year what will games look like in its fifth and sixth year? I hardly believe that improved graphics will be the main sellingpoint for XB720 and PS4. There need to be some other unique feature to appeal to the mass market. We must not forget that the geeks and graphics whores of this board will not be the focus market for Microsoft, Nintendo or Sony.
Me neither, as I believe graphics will almost certainly reach a level of saturation point (from a consumer perspective), next generation is the 'hot favourite time' for this prediction to happen.