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Initially the console variants suffered from a lack of sufficient horsepower to deliver the real-world physics and high-end graphics available to cutting edge PC hardware, but that margin began narrowing quite dramatically with the release of the super-consoles like the Xbox 360 and the PlayStation 3. I've long held the opinion that it was just a matter of time before console-based racing games caught up with the sophistication of their PC-based brethren.
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