to answer your question in layman's terms. xbox 360 or ps3 does not need to run windows xp. for ex - in xbox 360 , it has an ATI graphics processor, 512 mb memory gddr 3, memory bandwidth of 22.4 GB/s interface bus, 256 GB/s to EDRAM and 21.6 GB/s front-side bus, or brilliant resources high speed for parallel programming tasks during video rendering of a video game. added to this you have 3 core of 3.2 ghz processor for fast processing. of course the specs are inferior to a really high end computer rig, but come on. they are still better than any budget PC in the market.