Seems to me like it would be common sense. Say Sony takes its top notch programmers at ND, PD
and has them design a graphics engine tailored to the ps3, and then license it for a decent price to 3rd parties to use while frequently updating the code as the engine develops further. It would be taking out two birds with one stone. Not only would the graphical disparity between large devs and small houses diminish, they would basically be forcing the devs to make the game ps3 exclusive indirectly. That is, to port it, they would have to rewrite an entire new engine from scratch.
Now obvious MS could also do this. The fact that these two consoles are so distinct would mean that an engine tailored specifically to one would be a bitch to port (not to mention that it is licensed so porting it would be illegal).
It would also help out the small guys who simply don't have the talent/time/money to develop an engine that hits these systems to the metal.
Both companies have already taken a step towards this process by incorporating things like Havok prepacked with their dev kits and "free" (so long as you purchase the dev kit of course).
Now obvious MS could also do this. The fact that these two consoles are so distinct would mean that an engine tailored specifically to one would be a bitch to port (not to mention that it is licensed so porting it would be illegal).
It would also help out the small guys who simply don't have the talent/time/money to develop an engine that hits these systems to the metal.
Both companies have already taken a step towards this process by incorporating things like Havok prepacked with their dev kits and "free" (so long as you purchase the dev kit of course).