I think you misunderstood me- I wasn't talking about a traditional console model, as such, but rather a market for console-sized PCs. The so called "Steambox" concept, basically. If that market ever takes off, you can bet Intel will be in there big time.
I think the entire Steam back catalog has that covered.
Except again,a discrete card will be faster and cheaper. So ultimately its a moot point especially since Intel won't plonk GT3e discrete graphics on a £100 CPU,they will do it on a £170+ one which by that point is useless. You can get a cheaper CPU and discrete card which still will be faster.
I know loads of people who have DIY "Steam Boxes" in media chassis. Cards like the HD7770,GTX650TI,HD7850 and GTX660 are not a problem in those case and even those can struggle with some newer games. Unlike consoles,where devs try to get the most out of the hardware(plus certain overhads are lower) you do need to have more brute force in the first place with a PC.
At most it will still be entry level gaming on the desktop for a while. We are also making the assumption that AMD or Nvidia won't have any big performance jumps in the next few years too.
Moreover,once the IGP becomes too slow,it will make more sense to plonk in a faster discrete card,unless as rumoured Intel starts removing this ability. So,basically that means replacing the whole CPU and motherboard every two years when the next big IGP performance improvement happens??
Why bother? A PS4 or XBoxOne will last people years.
Its going to get worse with higher resolution TVs even if you take scaling into consideration.
The only real chance Intel has is if someone builds an "Intel console" but that means you need someone to dump money into to have loads of games optimised for it,not just one or two tech demos.
However,then you are competing directly with MS and Sony.
The AMD equivalent is Trinity, which spends ~120mm2 on IGP (and has a total TDP of 100W), and loses to Haswell GT3e. Unless you were referring to discrete, in which case NVidia's 650m only just beats GT3e and consumes 650W in the process. It is smaller, yes, at ~120mm2 again, but then in you are looking at die size you have to consider the extra memory chips which you also need for a dGPU.
I was talking about discrete cards,and the eDRAM is an additional 84MM2 ATM and still as you ramp up the settings the GT650M is faster overall in most games by a decent margin:
http://images.anandtech.com/graphs/graph6993/55280.png
http://images.anandtech.com/graphs/graph6993/55282.png
http://images.anandtech.com/graphs/graph6993/55284.png
http://images.anandtech.com/graphs/graph6993/55286.png
http://images.anandtech.com/graphs/graph6993/55288.png
http://images.anandtech.com/graphs/graph6993/55291.png
http://images.anandtech.com/graphs/graph6993/55297.png
http://images.anandtech.com/graphs/graph6993/55291.png
The resolution is not that high either.
The GT650M is a TDP limited part too at 45W and is already being replaced. So what about all the other parts,then??
Games don't stand still either,so yes IGPs will improve but so will discrete cards and they have far less limitations on power consumption and TDP.
Even if Intel assigns a 200W TDP to its desktop super-APU it will still hit the same issues,eventually what AMD and Nvidia have.
Yes, AMD and Nvidia are also improving, but at a much slower rate than Intel.
Again,Intel is starting from a lower base level,so they will look better.
The thing is though for a SteamBox,TDP is not going to as massively important as you think - performance will be. It looks more like a minimum PC spec,and if that is the case,it will be more a case of brute force for games as it will be running PC games,meaning the minimum spec will get higher and higher over a few years.
The decisions for Iris Pro are more to do with simpler packaging and power savings in a laptop environment than a desktop system to run games on.
Even then power consumption relative to desktop parts is still not as great as it could be:
http://techreport.com/r.x/core-i7-4770k/power-idle.png
http://techreport.com/r.x/core-i7-4770k/power-peak.png
http://techreport.com/r.x/core-i7-4770k/power-total-energy.png
http://techreport.com/r.x/core-i7-4770k/power-task-energy.png
It does indicate the L4 cache is not helping with power consumption, of the whole package and potentially pushing it upto desktop Haswell levels,with the IGP being inactive. So lower power consumption with the IGP active,but does not seem to help in situations where it is not really used.
Yes,it is not a laptop,but,the Intel test system uses a simulated battery,3 phase VRM,SODIMMs and a soldered on CPU,whereas the socket 1150 test system has a socket,high end motherboard with more phases which are less efficient,full sized DIMMs and a PSU way out of its optimal efficiency range with an IGP.
You are making the assumption that Intel will just double a few bits,here and there and have perfect performance scaling even if they allocate a higher TDP to special parts. However,as seen in the past with graphics chips and IGPs this has not necessarily been the case.
You can see this by looking at the HD4600 results and HD5200 results. The HD5200 does not even double the framerates of the former on average,even with a massive increase in bandwidth,twice the shaders and similar Turbo clockspeeds.
On top of this Intel wants to maintain decent margins too,which is needed for them to maintain funding on their process tech and to make sure they have a healthy share price,so if they make a big chip they certainly want a decent price for it.
Edit!!
Like I said before,I agree to disagree with you as our viewpoints are opposite. So I will leave it at that,as we will go around in circles otherwise.