Oh, this is rich. In speaking with the Mercury News
on Tuesday, the president of Silicon Knights (who has been a Microsoft second-party developer since 2004) had this to say when asked how Xbox 360 graphics compare to PlayStation 3's: "The 360 and the PS3 are equal in power in my eyes. Maybe the PS3 has more processing power. The 360 has more available memory. It's pretty much a net, net. The public perception of the PS3 was that it was much more powerful. To developers, they look even."
His original interview notes said this: "I'm developing games on dated technology that don't look as good as my competitor's box," but fortunately his publicist had him change it at the last minute (that was close). All joking aside, we can respect bossman Denis Dyack's partial opinion. But the real point is it doesn't even matter.