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Make a PS3 Slim. People got pissed when the PS2 dumped some of it's features to become a slimmer version, but when all that really mattered were the games, we quickly got over it.

PS3 Slim should dump wireless, all but two USB ports, SD Card Reader, those "touch sensitive" Power and Eject buttons, and Folding Home (The REAL reason the PS3 is faltering is because it tried to FIGHT CANCER! Cancer is clever, and supports Nintendo.)

PS2 to PS3 adapter, wireless Wi-Fi adapter should be optional so that those who think it's worthwhile can add those features if they want. Charge $199 to $250 for the Slim PS3 and $50 for the add on's, and Chad Warden may just live to make another video.