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Personally I'm glad they're going this route, the XBox is LONG in the tooth. I'd hate to see Halo 3 come out and be little more than a rehash of Halo 2 because the hardware is antique.
If the XBox 2 plays out like the XBox did, it should be a reasonably hot box when released, no more than a few months behind PC's Graphics performance wise (instead of YEARS)... and I expect Halo 3 to take full advantage of all the wholesome performance goodness.
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