Let's also keep in mind that consoles are inherently more limited in scope than PCs, regardless of what kind of processing power they can put out. That's simply a limitation of the controllers, but that is entirely why they're popular. They're simple and easy to pick up. Consoles just work and that's the downfall of PC gaming as it is. Complex games won't work as well on consoles (I am hopeful for DX3, even though it'll be years before I play it because my laptop is bad for games). This is something the industry is simply going to have to come to terms with, and we'll see a lot less original work for PCs from major developers over the years, but indie games have found a certain niche and are putting out games that look like they were made 10 years ago, but can innovate forward unlike the major developers because of lower costs. As some indie studios become more popular, I think we'll see a bridge between the graphics of the AAA games and the innovation of the indies in the $30-$40 release price range, especially with licensable engines. "The Ball," off the top of my head, though I've never played it, might be a good example.
