Michael Schade, the CEO of iOS games developer Fishlabs, believes that the next iPad will be able to deliver superior visuals compared to the current Xbox 360 gaming console.
Speaking at Develop 2010 (and as reported by Develop-online), he said that "you can expect some time next year to have rendering capabilities on mobile devices superior to the Xbox 360".
He noted that the number of mobile devices that use the iOS platform will possibly reach 120 million copies by the end of the year, which will be fairly close to the 140 million or so PS2 already sold (ed: and surpassing the Nintendo DS console total tally).
The hardware inside the current iPhone and iPad is based on PowerVR architecture and is already as powerful (if not more powerful) than the Sony Playstation 2 console.
The Xbox 360 uses a dedicated, proprietary chip from ATI called the Xenos, clocked at 500MHz, and sharing similar functionality as the Radeon X1900 which is nearly five years old now.
Any performance improvement may have to be counter balanced by a tradeoff in power consumption but that may be solved should the mobile phone manufacturer implement smarter power management solutions.