I see people here did not read between the lines or whatever.
Someone did though (GDC panel transcript, great stuff to quote)
Greg Costikyan wrote:
As recently as 1992: games cost 200K. Next generation games will cost 20m. Publishers are becoming increasingly risk averse. Today you cannot get an innovative title published unless your last name is Wright or Miyamoto. Who was at the Microsoft keynote? I don’t know about you but it made my flesh crawl. [laughter] The HD era? Bigger, louder? Big bucks to be made! Well not by you and me of course. Those budgets and teams ensure the death of innovation.
While I do not 100% agree with Greg's statement, it seems clear Xbox's technological advances are rather offtopic. HD is news? Perhaps if we were talking about a mere TV.
What will XNA Studio do to PC as a gaming platform? If one would base estimates on the Xbox 1 performance, and having all Xbox titles start coming to PC also, but having less of PC invidual titles, it can't be all good. I have no interest to play the latest Battlefield (2) with a pad!
Maybe future isn't this grim for the PC player. We may even see something new on Xbox/PC - something PS players have had before. And computers had before PS, but PS had more than PC thereafter. I am of course talking about some innovative titles here. Had we have XNA studio and every publisher wanting XBOX+PC release of every game, would have we had Battlefield 1942 in its current form? (OK probably as its dev was started before Xbox release - not the point though)