gumbykid :
One final question then. How do gaming consoles compete with PCs when high end PCs have a 10x stronger CPU? Obviously the PC can run at higher settings and better FPS, but it's certainly not 10x better. I remember hearing about how consoles are designed with all the parts integrated in a way that everything runs much more efficiently because each component specifically works with the others, instead of generally being compatible.
There are several reasons:
1. The last generation of consoles can't compete with modern PCs. In fact, the XBox 360 and PS3 were unable to run some of the most demanding PC games from their time. My favourite example is Crysis, released in 2007. It was one of the first titles to support DirectX 10 and included a 64 bit executable. Cryengine 2 simply couldn't scale down to run on the consoles in a satisfactory way. Crysis 2 was released on PC to much dislike because Cryengine 3 made huge sacrifices to enable it to be released on the consoles at the same time. Physics were stripped out, levels were smaller with lower draw distances and object density (although the world design was top notch), the graphics API was DirectX 9 only upon release (later patched to DX11), textures were low resolution (later patched to include higher resolutions) and there was no 64 bit executable. When Crysis was finally ported to the consoles in 2011, it used Cryengine 3 instead.
2. Hardware APIs on PC have more overhead than their console counterparts. This is what allows PC games to run independent of underlying graphics hardware. The same (properly written) code paths can be used for all graphics hardware from AMD, Intel, and NVidia. Consoles have only one hardware set, so overhead can be minimized.
3. Most games really just don't need a hefty CPU to begin with. Crysis mentioned above is simply an exception. When developers feel like taking advantage of extra resources, they can simply allow the user to scale them up/down.
4. Consoles use operating systems that are heavily optimized for real-time gaming. There's little background overhead to worry about.