I don't know about that...surely there's no limit to the amount of power a game could need? Why do we need to put a limit on that?
And the second point: the consoles themselves are probably going to cost more too, and it will probably be more expensive to buy the games as well.
edit: IGN also have a similar
article up now...and in it they mention that Xenon will have 3 controller ports instead of 4 on the current Xbox. If this is true, I'll be quite dissapointed. Why would you take a step back and decrease the controller ports? That just sounds extremely stupid, and hopefully IGN screwed up on this.