Just because you quoted a comment from the article doesn't make it true. Sorry, but not everything you read on a Playstation blog is true and this happens to be bogus. These statements are most certainly not from Allegorithmic.
Allegorithmic's ProFx procedural rendering package is actually a pretty slick technology and has, in fact, already appeared in games .. on the Xbox 360! Roboblitz is an arcade title that made use of this package to produce a visually impressive game within the size constraints of an XBLA title.
The claim that this is only possible on the PS3 is nonsense. In fact,
ProFx is part of Microsoft's XNA Tool Suite, so it is much more likely to be used in Xbox games rather than o...
The job position has nothing to do with the next Xbox, with a new MMO, or with any Home-like environment. The Server-Backed Games group is the Microsoft studio that is developing 1 vs. 100 and other similar mass participation casual games. That is the project being talked about here.