Originally Posted by Willynowei
AMD has two entirely separate campuses dedicated to each system, the two teams are under strict NDA's to avoid speaking with or contacting each other. Once these engineers go to work, they do it in a black box, but because they start with similar die sizes, power constraints, and silicon budgets, the designs are going to be somewhat similar.
they are not "somewhat similar." they are the exact same.
as for the "tradition" of selling at a loss, it's a fairly new tradition. Nintendo has never sold at a loss, for instance. I have read well founded speculation that neither Sony nor MS plan on selling at a loss this go round, but I'd have to go find links to back it up. the parts they are using are all essentially off the shelf. given bulk manufacturing discounts and all that, it is not hard to imagine a scenario in which a $400-$500 Xbone makes MS money. they lost an extraordinary amount of money brute forcing their way into the console business with the original Xbox. everyone involved in that original effort has either been fired or moved on. I don't think they are interesting in maintaining that kind of effort, especially now that they are hedging their bet with a TV wonderbox.
the point is that the traditional "leap" in graphical quality between console hardware generations essentially does not exist this time around. there are reasons for this.