I dont think hes talking about the bits in the cpu.
Nintendo was 8 bit. Snes was 16 bit. N64 was, well, 64 bit. Etc.
I think you are right though about bits not being so important anymore, even if you meant it differently.
Also, remember the days whenif a new console was coming out, all you knew is that it would be better? Like I own a 16 bit snes and Woah a nintendo 64 is coming out! 64 is better than 12 right?!!? Cool its 3d too!
It was so much simpler back then. Much less of us knew or cared about the performance of the console. The bits was basically all that most of us could interpret (comparison wise).
The thing is that much more of us are learning about tech and there is an increasgin amount of competition... so let the games begin (pun intended
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