Speaking with journalist and Xbox guru, Dean Takahashi, Bill Gates offered several jabs to both Sony and Nintendo in the wake of CES. Speaking on Nintendo, Gates expressed concern that the novelty of Wii could wear off without good graphics to go with it, and that he still considered Sony to be MS' biggest competitor (O RLY?). Regarding the PS3, Gates notes that the 360 has the advantage in every area. According to Gates, the 360 has good games, is easier to program, and is cheaper to produce. Because of the 360's head start, it also has the advantage of undergoing cost reduction at a much faster rate than the PS3 with its more costly components.
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?