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Do you know that despite the PS2 outnumbering the XBox, 4:1 the number 1 game on PS2 sold only twice as many copies as the number 1 game on XBox (Enter the Matrix)? The number 2 game for both PS2 and XBox sold the same number of copies on each console, and the #3 XBox game sold more than the #3 PS2 game!
What does this mean? The PS2 is getting old and the XBox is catching up.
Developers prefer to work on the XBox. Nobody wants to use the horrible command line tools associated with the PS2, nor does any programmer want to write VU1 microcode to eek out the last bit of rendering performance from that machine. If you really want to get your game moving, you have to divide your code up and compile for different CPUs so you can use the VU0, VU1, EE and IOP all at the same time! It's a major pain in the ass.
With XBox you get a nice debugger (even if the compiler is crap) and nice managment tools.
Productivity for a development house targeting XBox triples over a place going for the PS2.
</rant>
Xbox is a good choice, and it will be a better choice when Crimson Skies comes out.
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