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MO could have been on the PS2 easily...
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I dispute this fact. Lorne said repeatedly that they struggled with the PS2's limitations and wanted to go to the Xbox because it had much more powerful hardware. That they then got caught in a binding contract that limited their development time was a seperate issue.
Also, it should be remembered that the early MO videos were not actual gameplay footage. They were hand-animated and prerendered in order to demostrate what they were hoping the game would look like.