@Lou

Fall-Winter of 2010 is the ATI Hecatoncheires. Not much info is available but one would have to believe it'll be a sort of massive (100 handed) core GPU. I'd suspect in the vein of Larabee and Fermi. Microsoft working with ATI now to get a new GPU in a couple of years allows them time to fine tune the product for their particular application, and of course fine tune the software too.

Rumors are Sony will be going Cell + Larabee. The Cell duplicates some of the functions of a GPU. If the GPU (Larabee/Fermi/Hecatoncheires) have 100 cores adding another couple from the Cell really won't be a benefit. It'll be interesting to see if Sony indeed modifies the Cell. They've switched CPUs for all 3 of their consoles. Certainly there are good choices out there they might switch again. It appears technology is going a different path than the Cell approach.