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SuperDave said:

Obviously Sony can't force developers to stop making for the ps2(such a large install base makes for nice sales), but is it possible that the fact that there are still lots of ps2 games coming out and ps2's being sold is causing the ps3 to sell a lot slower then it otherwise would?

 Just curious whether the continued life of the ps2 is actually hurting the ps3.

 Alternately, would it of been a good idea to simultaneously release the major games that have come out for PS2 for the PS3, like GoW2(with upgraded graphics, sound etc.) kind of like what Nintendo did with Twilight Princess at Wii's launch?

I could be wrong, but I suspect that if the PS2 stopped having new games available for it tomorow 95% of people currently buying PS2 games (and systems) would have no interest in the PS3 ... People who are buying games for a 7 year old, $100 console are probably not that interested in a system that is $400 and only one year old; they will either be highly motivated by the large quantity of high quality inexpensive content availabler for the PS2 or have no ability to afford a PS3.

In a way the problem with the PS3 is demonstrated by how Sony packages and ships every PS3 system they sell; they ship every system with a composite cable because the vast majority of households do not have HDTVs, and even those that do don't have 1080p TVs that support HDMI. Sony has produced a product for a market that doesn't exist, and in doing so pushed the price of the system beyond what people in the market (that does exist) are willing to pay.