It does look quite bad on consoles, however thankfully graphics are not the most important aspect of an RPG. KotOR is still a great game even though it doesn't look so good anymore.
In a way I guess we should be thankful that the DC died so young. Had it not, we would not have such fond memories of it today. The PS2 is a better console in most regards with a huge number of awesome games, but who have any special feelings for a console that has been around for almost a decade? The DC is a movie star who died at 21 in a car crash while most game consoles die natural deaths at the age of 77.
I think compatibility is a much more important issue. Half the games I've bought on steam have problems with crashes, graphical glitches or won't even start. You have a PS2 game you put in the console and press the power switch and it works. These days even on consoles you have to download patches and whatever, but still much, much better than on PC. I don't think that problem is ever going to be solved...
A lot like the early 80's when games took two weeks to make and everyone was pumping out clones. If only there was a way to easily find all good games...
Phenom may not be better than Intel's CPU, but it is not much worse. Compared to A64 which is much worse. If you must have AMD Phenom isn't a bad choice. Intel is still the best though.
If only SEGA could do the same come back as Nintendo. Some people even thought they would stop making consoles after N64 and Gamecube being such flops and now they have the best selling console. It's still hard to believe. They went from number one to number three and number one again in 3 generations.
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