This crappy EGM article got pretty thoroughly ripped apart on joystiq.com. Here's the gist. Only two days ago, reports came out that the Rev's Broadway processor was finished.
http://www.joystiq.com/entry/1234000680069991/
This means the developers are only getting the Rev's silicon right about now. So whatever those EGM retards saw, it wasn't running on Revolution hardware. And it certainly wasn't developed on Rev hardware, so their report is pure crap.
So why do the graphics at this point look GameCube level? Because the Rev devkits to this point are basically GameCube devkits with perhaps some functions for the new controller. Remember, the GameCube is fully compatible with the Rev, so using the Cube kits for the early development of Rev titles makes perfect sense. Developers will add the spit and polish as they get the actual Rev devkits.
Personally, I think this idiotic EGM report is great for Nintendo. It lowers expectations, so people are going to be awed when they see that Rev launch titles look as good or better than XB360 launch titles. It'll turn the existing paradigm on it's ear, and that's exactly what Nintendo wants to do: shatter current misconceptions and re-write the script for the future of gaming.
Nintendo's in great shape. When it comes to online play, maybe they were late to the party, but they're in the process of making an entrance that puts the current participants to shame. With Nintendo making online play both wireless and free, it's Microsoft who's in trouble. The XBox Live model they spent years building is getting bulldozed as we speak.
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