Originally posted by: Matthias99
Originally posted by: 1Dark1Sharigan1
The reason why console gaming costs much less than PC gaming is because neither nVidia or ATI actually makes the cards, Sony & Microsoft does so they are the ones that bear most of the cost to produce whereas PC video card manufacturers have to bear most of the cost themselves, hence why we get cards costing upwards of $500-600 wheres the X360 can be had for $499 . . .
Actually, on the (original) XBox, NVIDIA was producing the GPUs and selling them to MS. They actually got into a legal fight over it, since Microsoft wanted to negotiate a lower price after the console had been out for a few years, and NVIDIA didn't want to. On the XBox360, MS bought the GPU design from ATI, and they are manufacturing it themselves.
(Hence profit margins for consoles goes down as more units are sold whereas profit margins go up for video cards go up as more units are sold)
That makes sense only if you are selling the console at a loss (which sometimes occurs, at least early on in a console's life). Console makers get a cut of the profits from every piece of software sold for that console, which gives them a lot more pricing flexibility on the hardware than PC video card makers.
Also, it's up in the air how good that X360 GPU actually is, and probably isn't that much better than the current generation of cards . . .
It sort of depends on your definition of "better". The GPU in the XBox360 is built around running shader-heavy SM3.0 games at relatively limited resolutions and framerates. PC GPUs are built to be more general, and have to both support a lot of legacy software and be able to run at a much wider variety of resolution settings. A lot depends on how well games can take advantage of the XBox360's GPU setup. It's certainly not clear that it will be more powerful in an absolute sense than something like a 7800GTX or X1800XT, but it will probably be at least in the ballpark.