Now, work on the PS2 allegedly started soon after the PS1 launched. Likewise, as soon as the PS2 was out the door, work on the PS3 began. These things don't happen overnight!

With this in mind, AMD/ATI might be providing the GPU for the next Xbox and Nintendo hand-held.

They've done a great job of providing custom jobs for every system they've done GPU's for. And by "they", that includes ArtX who was bought by ATI. So, to date, they've done work for Nintendo (Gamecube, Wii) and the Xbox 360. Compare this to Nvidia who has for two generations running reheated leftovers for Microsoft (Xbox/GF3) and Sony (PS3/GF7800). I've notice in all the developer interviews nobody talks about RSX in the PS3 except to say its weaker than the Xenos GPU in the 360. I really wish Nvidia had offer Sony one of their DX10/unified shader GPU's for the PS3. Oh well...

So, if this is true, then the only other "big" thing is to see who does the CPU. My money is on IBM again.