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BaldrSkies said:

Sony has much better market penetration into the second and third world (markets besides the US, JP, and EU).

These emerging markets are perfect for selling older, cheaper gaming hardware such as PS2. Sony reinforced this with their recent conference in Brazil. These markets are also quickly growing, and will become much more significant in the coming years.

In other words by starting early and making the Playstation brand well known in emerging markets, Sony is effectively investing in the future. As these markets grow and more of their consumers gain disposable income, their first choice when it comes to modern gaming will be this well established brand they have known for years. Latecomers will only have to fight an uphill battle against a well entrenched opponent to gain market share.

Don't think the US/JP/EU market triumvirate will last for too long. China has already grown explosively in terms of buying power.

This is very true. Nintendo and MS should take note of how these markets are growing. They need to start marketing themselves to a broader community.

OT: All I have to say is that the DS is still in production. Other than that, okay.