Great gaming requires great hardware, and we know to get the most out of it, you have to design the hardware with software in mind. You have to design the hardware with the game creators in mind.
Now ultimately there are two approaches when you're designing game hardware. So let's talk a little bit about how we thought about it.
One approach, you can say 'hey it's all about the hardware'. Take a super customized approach with a lot of PhDs and you can design your hardware to win at science fairs. Lots of blue ribbons. You can woo over the electrical engineers of the world.

lol) You might go so far as to put a fancy label on it. Forget the fact that it's hard to program too, this is cool!
That doesn't mask the fact that you didn't design it for the developer. It becomes apparent because after you launch a system like that it takes a year before anything worth playing comes out. That's a crime. That's a crime. There are too many good ideas in this room to go with that approach.
The science fair approach turns game programmers into hardware schedulers and the only emotion that approach can elicit from you, is frustration.

lol)
Those days, they're over.
Here's my point, heres our approach. The platform is bigger than the processor. If your starting point is hardware and focusing on maximum theoretical performance, all the software and services in the world aren't going to help you people make better games.
It's the wrong design point. Hardware's no good if you can't light it up.
So we took the other approach. We designed the hardware with the software in mind. Software that maps back to your needs: the needs of content creators. The better the marriage between software and hardware the closer you're going to get to achieving the theoretical performance of the hardware. When we set out to design that hardware we said from the start we wanted to create that elegant balance between software, hardware, and services.
Of course, we picked cutting edge partners. Three years ago. It was over three years ago we sat down with IBM and ATI and built a custom designed system. This system is a monster. It's going to deliver over a teraflop of targeted computing performance. And for the last three years, we've had a thousand engineers working on it, working across nine different locations to bring the system to life. It's going to be an amazing system.
We're going to deliver custom hand-coded silicon, just like the other guys. But we're going to design that for the HD-era in mind, HD-consumer in mind, and most importantly the HD-game creators in mind.
We believe that innovation is critical, and unlocking that innovation, we need to deliver on familiarity. So we designed the system to bridge gaps. Bridge from the successful last generation and make sure you can use the same tools, same processes, same middleware that you're all familiar with.
So you're not re-imagining your process, you're re-imagining the game.
For the next console, we made a very conscious choice. We made the conscious choice to go to multi-core general purpose silicon. High performance cycles that provide unlimited flexibility. Limitless. It provides you the headroom that you need you'll need and it gives us the opportunity to deliver value to the customer after we've locked on the hardware specs. And we're also insuring that you can take advantage of it. By taking a symmetrical multi-core architecture that's happening in the PC world as well, you get to take advantage of all the new techniques and processes that are coming to life on the Windows platform and on the xbox platform.
So we designed this hardware with software in mind, with you in mind. Our approach here is Bruce Lee. It isn't brute force. And the result is a platform that has games at its core. You're going to be free to develop and innovate with no restrictions and no struggle with the hardware. That's going to allow you to make great games.