Gates also stated that the PS3 has no advantage in terms of graphics and that it never will. In his words, Sony "burned a year" trying to get graphics out of the Cell processor, only to have Nvidia provide a chip at the last minute. Add to this the fact that the PS3 has no unified memory and that programmers have had longer to learn the intricacies of the 360 hardware, and the PS3 is caught in a cyclical game of catch-up.
Finally, Gates managed to squeeze in one more denial of a larger 360 hard drive on the horizon. When asked about the need for more space -- especially with IPTV and DVR functions on the way -- Gates responded that much IPTV data is stored on servers and storage is unnecessary. To wit: "We don't have to change the Xbox 360 at all." Uh huh, and 640 kilobytes is all we'll ever need, right?