Imagination Technologies claims it's working on new graphics chips that will enable smartphones to have games with graphics as realistic as the PlayStation 3 console. The company claims devices with the chip should be available in just three years.
They know this because these are the chips they're designing right now. The way the development process works for phones is that Imagination comes up with a chip, which they license, and that works its way through development cycles and people like Apple or HTC, which then incorporate them into their phones, which they in turn have to productize and bring to market. The whole thing takes three years. But in three years, says Imagination, you're going to have a PS3 in your pocket. And that's not just running at the 480x340 resolution that most phones have now, that's PS3-esque graphics on 720p output via HDMI to a TV. Hell, some phones in three years will have a 720p display native.