@sieanr: I agree, a ten year plan doesn't exclude that PS3 will be the main console for a shorter period and will end its life as the low end model, just like PS2 is doing.
And in 4 to 5 years, due to HW progress and cost reduction, all three Sony, MS and Nintendo will be able to produce consoles 4 times as powerful as their current ones (Nintendo even more) at a cost lower than the current, and much lower than current gen launch prices, obviously a 4x computing power increase isn't as radical as PS2->PS3, but more than enough. Full BC will be easy and cheap too, if all will stick with evolutions of their current architectures, and Sony will be able to give PS2 BC too with very little costs, by then.
Edit:
@Pristine20: I think too that granting to 3rd party SW developers a long life for the platform makes wonders to please them.
One thing I'd like to add: BD movies are starting having more affordable prices, this is another help, maybe getting smaller as BD players get cheaper, but stil a help.
