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It should be one of the main reasons to make new console especially when gap is big enough to justify and gaming experiences are being sort of ruined by the hardware for long enough time. Next consoles should finally take us back to the more fun era of gaming I would say as long as console makers like Sony don't skimp out heavily on hardware. My reason for this is, developers will finally be able to release games with high graphics quality and gameplay without having to try to water down features or lower resolution to get it to run at an acceptable frame rate or close to it. Less time will be spent optimising or thinking of ideas to get it to run with such low performance hardware, more time working on actual gameplay and freedom of a console having potentially more than 10 times increase in graphics performance than current generation and a lot more memory. CPU wise it should be easier to program for, not sure on performance of them yet, might not be much of a improvement on that side but enough to enhance gameplay for majority of developers.This is depressing as all get out to read. I sincerely hope companies don't let graphical prowess dictate how often they have to flip consoles. There's a time and place for realism, and that will always be a challenge to fit within a console's specs, but plenty of games have proven successful, and tons of fun to play, without having an alphabet soup of graphics-related features, or the same turd-brown palette and "gritty realism" the usual first-person-shooter suspects employ. A lot of the best games for both 360 and PS3 have shown up in the second-half of their lifecycles. While this generation's time length has been a bit longer than the two previous, I know I for one would probably just stop buying them if they started pushing them out every 2 or 3 years. A lot of people buy consoles for gaming exactly to avoid that annoying constant-upgrade approach to PC gaming.
About PC gaming, you don't really have to upgrade to play games as well as consoles and PC gaming if you don't go crazy on parts, then it is cheaper than console gaming. Like my current PC bought at similar time as PS3, has cost me to date about £100 less than my 60GB original PS3. It has better resale value (I have only upgraded a few times at a very small cost to me), and it is is much more powerful. Graphics card is at least 6 times more powerful, can play games at 1080p and 60FPS at high details but also takes less power than my original PS3. Games are also cheaper on PC. Main attraction for me regarding consoles is more the larger gaming community, way licenses work, sense of progression, fairness and plug and play approach of it.
Screen resolution for most people for next-generation consoles will be 1080p so gaming PCs will be less relevant I feel due to not really bringing much enhancements. There will probably be less pressure release a new console next time round, unless there is a major breakthrough regarding hardware in the world. Sony can think of other things to also prolong the next-generation like being able to scale performance up using second console if need be, for example higher resolutions. It all depends on really how strong the GPU will be from Sony and Microsoft to be able to better determine how long generation will last, whether short or long.