Simon Green told New Scientist that home computers running the company's GTX 690 graphics card are 24 times more powerful than the Microsoft console.
Epic Games recently showcased its next generation Unreal 4 graphics engine on a PC powered by Nvidia's GTX 680, which is said to be half as powerful as its latest hardware.
Green went on to say that cloud technology could be the future of the gaming industry, pointing out that "the whole idea of owning a separate piece of hardware to play games on might be completely redundant" years from now.
Epic, which has been working on Unreal 4 since 2003, confirmed that the first game powered by the next generation engine will arrive in 2013.
Elsewhere, Final Fantasy studio Square Enix has been demonstrating the power of its new Luminous graphics engine.
Watch a video of the Unreal 4 graphics engine in motion below: