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I haven't read this thread, yet.  I'm sure someone already pointed this out but:

  • Work on the N64 (Project: Reality) started in 93-94.  It released in 96.
  • Xbox development began in 1998.  It released in 2001
  • Gamecube develpoment began in 1998-1999.  It released in 2001
  • Wii development began in 2001.  It released in 2006.

These are just a few examples.  Everybody is always working on the next successor to their current generation console (at least, the successful companies are).  It's not news to know that the next gen is being worked on.  I mean, Nintendo has a new console about to be shown at E3.  It's probably been in development since 2005 or something.  The only thing that bothers me about Sony "letting the cat out of the bag" so early is that I feel they're trying to cause a Dreamcast-like situation--one where people hold off on buying the new console (Nintendo's) based solely on the promise that a better experience is going to be released in the near future and that it's just better to wait (Nintendo did this with the PS1 and Saturn, too, if you recall.  It actually worked until the PS1 really took off in '97).  Anyway, my two cents.  You got 'em.