According to a gamespot article the ps3's GPU will have the power of 2 6800 ultras so how can the ps3 sell at console pricing when the graphics card alone should be worth $1,000. http://www.gamespot.com/news/2005/05/16/news_6124681.html its in the 4th paragraph.
its not basically the gpu its how everything is compressed and optimized to run good on the system, nvidia and ati are working with game systems but as some video cards are optimized to do better on synthetic benchmarks for example, the ps3 will be fully optimized to run games and strong multimedia applications
Power and performance aren't exactly the same thing. I believe that the RSX is very similar to a G70 GPU, and the G70 was an enhanced version of the 6800Ultra GPU with less TDP and better performance. It may mean that the card is more powerful because optimization with the Cell and memory increases its 'net' power. That article is also 3 months old, so it may not be totally reliable about twice the power of 6800s.
Plus Ive heard that console makers sell the consoles for less than they are worth to get more buyers then earn there cash back on games and accessories.