Just for the heck of it, the developers used four Megs worth of textures on this little, nondescript flower. Mr. Hebenthal then pointed out that the Playstation2 has only 4 Megs of texture memory total, meaning it would only be able to display this single flower. Of course, to show his machine's superiority, he zoomed out to show the rest of the garden, which had many such flowers scattered about. The point of this was to show that X-Box developers can allocate the system's 64 Megs of RAM to anything they wish. Unlike existing systems, where there are different pools of sound RAM, graphics RAM, and processor RAM, the X-Box uses one large pool, which can be partitioned however the developer chooses.
Flexibility is the key.
They wouldn't comment on the maker of this chip, but if you think of the biggest maker of audio chips, you probably won't be far off. This demo had very simple graphics, consisting of four different colored circles, one in each corner of the screen, and a little cursor that could be moved around. Each circle could have a genre of music applied to it, like Disco or Country. But, as the cursor was moved towards Disco slowly, eventually the drum section began to morph slightly, until there was a funky back-beat with a twangy violin playing over top. As the cursor moved closer to Disco, and further from Country, the music gradually lost twang and gained funk.