If rumors are to be believed, the new Xbox 720 is set to pack in AMD's latest 6670 chip that supports DirectX11, multi-display, 3D and many others. Moreover, if Microsoft decides to wait until 2013, AMD's new HD 8000 series graphics chips will be available for integration in the new console.
According to Epic Games' VP Mark Rein, the new console will have more power than 360 has with technology like Kinect built into it. Thus far, Microsoft has used a custom-developed IBM Power PC with a trio of 3.2GHz cores and an ATI GPU in its Xbox 360 which was considered to be a hot technology at the time the Xbox 360 arrived.
However, the PlayStation 4 is expected to arrive with more improved specifications that will look to challenge the Xbox. Although it was previously reported that the PlayStation 3 has a processor (or Cell) which is hundred times powerful than the Xbox 360′s processor, it has also been said that the PS3 doesn't fully utilize its powers. Also the RAM and the DMA (Direct Memory Access) are actually quite poor and insufficient and just cannot support the all powerful Cell.
The outcome of this is that most of the current games are first developed for the Xbox 360 and later ported over to the PS3, and may sometimes have a few modifications. Now it is expected that the upcoming PS4 will solve this issue of the processing unit making life somewhat easier for the developers and will be able to generate maximum output for the gamers
