[quote name='epobirs']There is a really important difference between IPTV and a full standalone DVR capability. If you ever used an integrated DVR with a satellite/cable TV setup, you may have noticed that the quality of the recording s was higher than when using a standalone device added to a TV reception system. This is because the integrated DVR is seeing the compressed data stream from the sender and is simply recording the bits unaltered as they go by. A standalone box, such as an original TiVo or Media Center PC, has to take the decompressed video stream and encode it to whatever codec is being used. (MPEG-2 in older gear and an MPEG-4 variant in newer machines.)
Obviously, just capturing a data stream without having to perform much work on it takes far less horsepower than having to encode video while capturing. A game console that can continue running content downloads in the background while playing a game won't have much trouble including IPTV content in those downloads. It's just another file. Doing the full standalone DVR recording task while allowing games to be played would be far more demanding.
This would requirement a fair amount of processing power to be dedicated to the task and never available for game developers to exploit. Otherwise, the game developers are going to use it and break the DVR functionaility while their game is engaged. It's their job to get as much as possible out of the machine.
The alternative is a console with hardware features usable solely for a non-gaming function. Not a problem if you feel assured tens of millions of people will want to buy such a unit but in real life you'll get a lot of people saying they already have a device for DVR stuff or just don't care about it, so why can't they have a cheaper model without it?
So having a generational upgrade that doesn't apply to game developers is an iffy thing. Background downloading during gameplay would be nice and that would encompass IPTV material. Beyond that, things get very speculative. This is why just throwing more cores in the new system is not a slam dunk solution. The GPU upgrade path is pretty clear cut since almost everything happening in that business can be applied to gaming, while CPU needs are far more narrow than for a full on PC or server.[/QUOTE]
I guess Sony has tried some things along those lines. An SPE in the PS3 is reserved for the OS so games can't use it. They also tried the PSX, a PS2 with a DVR, but I think it was a flop. In that case, you could say the regular PS2 was the cheaper model without DVR and it was obviously much more popular. On the other hand I think the PSX was really overpriced, like a luxury item.