The saving grace for development right now is SDK 3.0 (with an April 07 miracle called Runtime 2.1) and a fix for fatal stalls.
As well as new and improved developer tools, plus real university taught education programs.
(PlaystationEdge, PhyreEngine, MIT, CIT, GeorgiaTech, USC, NC State, etc, etc)
Quite frankly parallel processing was too advanced/new an idea for most gaming studios to develop for.
Even on the PC, only the very largest studios were in 2007 just beginning to use multi-threaded engines.
So it was critically to get into the educational institutions and teach multi-core architecture, ISA's, and programming structures.
This way developer would be able to work for themselves and not rely on reworking other game's engine.
Now that is happening and developers again have hope for the following development cycles will be much better.