The bit I don't understand (as someone who's not super knowledgeable about the inner workings of computers) is why this isn't the same situation as the PS3. PS3 had wildly different architecture to PC's. This made it difficult to develop for which lead to a lot of that consoles problems. This time round they're closer to a PC style architecture than before, but rather having separate graphics memory and RAM, they're having 8GB of GDDR5 shared between the two. Surely, like the PS3 before it, leads to a different architecture that developers have to learn and makes development difficult?
Developers are all talking highly about this thing and how easy it is to develop for, so I assume this is just my ignorance of not understanding how computers work.
You are right in both ways: yes, GDDR5 as system memory is considerably different from PC and no, it will not make the console more difficult to develop for.
What Sony have said is that none of the launch titles actually take any real advantage of the GDDR5. This would mean that they can just treat it as any old DDR3 system RAM for ease of development. Sony assumes that as developers get more familiar with the console and are able to start tapping its potential, as happens in every cycle, they will start to be able to make real use of the GDRR5 and give the system an edge long-term.
This makes sense. The demos we have seen so far certainly look good but they don't look appreciably better than the Xbone demos and certainly not really any better than PC games on running high-end systems today, despite both of the latter running strictly on DDR3 system memory. So if there is a significant advantage to using GDDR5 we haven't seen it yet.
Switching to GDDR5 probably was a gamble when Sony did it, but it's hardly one now. It has no real downsides at this point: Sony managed to push it all the way up to 8 gig and the PS4 is still $100 cheaper than the Xbone. It's pure gold: even if it would turn out not to make that big of a difference it's an excellent buzzword for marketing.
I'm not sure what the theoretical advantages of GDDR5 as systems memory really are. It hasn't really been done before so there's nothing to truly compare it to. As the graphics card market moved on in the last few years, VRAM in general has taken the backseat to other features such as GPU clockspeeds and number of cores. For example, the Radeon HD 7950 has 50 % more VRAM than the GTX 670 but the Nvidia card still outperforms the AMD card in most games. Higher VRAM really only gives a true edge at very high resolutions (which the PS4 does neither appear to target nor support at the current time) and memory-heavy tasks like high levels of anti-aliasing, the latter being something that could actually differ between the two consoles even if most people probably wouldn't see that big of a difference. Really high levels of anti-aliasing provide diminishing returns as far as PC gamers looks at it, and it's usually the first thing to scale back in order to gain better frame rate or higher resolutions.
But to be honest that's not really comparable.
If pushed I could think of one thing: it could allow the unit to off-load more assets into the RAM pool for better preloading, minimizing things such as pop-in textures, allowing greater draw distances and in general provide the basis for larger sections of the game world to be truly dynamic. I think I've heard some developers say the same thing.
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