A lot of people wont switch over. The PS3 is too expensive and lacks a strong enough library of games. It lacks in what the PS2 did well in. These consumers are more likely to go to the Wii, the PS2 of this generation.
Killing the PS2 will do nothing but sever a lifeline for Sony. They need this money if they want to try and keep the unstable game branch from tumbling over. Even if they PS3 wasn't losing money, it would be a bad business decision to discontinuing a product that was still making money.







