I think sony is going to let part of the CELL processor do the graphics, I dont think they care about special effects. Seeing that the CELL is whats being hyped about when theres talk about PS3; similirly to they emotion synthesizer for PS2.  And all this talk about a Gentlemans Agreemant is just wishfull thinking, or too much imagination.  Can't anyone see how this is a good business oportunity for both Nintendo and Microsoft?  I dont think Microsoft plans on making a handheld gaming system in the future. All those rare games that where being developed arent going just going to waste.  Theres a good change of Microsoft porting the games to N-gage or any of few handhelds coming out.   Just because an Isuzu uses a chevy motor, doesnt mean its agreement with GM to beat Toyota.  Well its not impossible for Microsoft and Nintendo do plan something, But i doubt it.........A LOT!!!