Come on man. Consoles SUCK. They could have 12 cores but they won't even beat out a PC in terms of thread performance, and besides, just cause it's multithreaded doesn't mean anything. Everything will run fine on a Pentium, it's just that it'll run better on higher end CPUs with more threads because of the extra performance, so everyone with a dual core now will be fine (so long as its a modern arch. and has a decent clockspeed). As for you upgrading, that's stupid. If you use a Xeon for gaming, you should slap yourself in the face with a bass. A Core i7 is TOTALLY POINTLESS for gaming right now as is, but people use it. Your 2600K is more than good enough, it's perfect, what good would upgrading be considering IB was like a 7% performance difference, and HW is only gonna be a 15% or so difference? Just overclock, don't bother wasting more money cause honestly, I wouldn't expect more performance out of these better consoles, I wouldn't expect more demanding games, I wouldn't expect people even bothering for more cores.
To sum up, shut up & just play, if you care about consoles, slap yourself with a bass because they aren't getting better anytime soon, even with 8 cores. Still crap.