"It is highly likely that Microsoft's 3rd generation Xbox will be sporting a new IBM cell processor as well although it is slightly, ever so slightly possible, that this could change."
The Cell was all but abandoned by IBM, and MS' Xenon (weak Power6-type cores) easily won in real performance for a minimal amount of developer-hours, every single time. It would be good for MS to keep going with IBM, but with a more general-purpose chip. I would seriously hope that is a typo (IE, should say Sony), or misinformation by MS. Power7 looks to be a perfect CPU to rip parts out of, and they will have a nice compute-capable GPU.
wouldn't that mean removing a ton of xtors that exist for CUDA reasons? it would need it wouldn't it to get it anywhere near AMD in thermals and power/watt?
Wouldn't that be cutting on their nose to spite their face? CUDA should be a specific selling point, key features of CUDA are integrated into the HW, and CUDA is far more mature than any software support GCN will have, much less AMD's VLIW support.
If they choose AMD gpus then clearly the need for highly advanced tess is low.
It's practically nonexistent. It may have been better for AMD to make tess that wasn't tied to memory channels, but the reality is that it takes unplayable scenarios, or very expensive cards, for nVidia's tess to show itself being really great. Neither should be applicable to consoles, nor the majority of PC games, either. Tesselation is going to take a few generations of both HW and games, to really be useful/needed. That it is required for DX11 means that it will be there, though, and will get used.
Microsoft and Sony may suddenly jump to ARM by 2013-2014. If this happens - Nvidia will be the only choice.
On top of that being highly implausible (ARM designing CPUs that will not be good for mobile devices), I don't get how it would make nVidia their only choice. In fact, I don't see how moving to ARM would affect their GPU choices one little bit.