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HELLFISH said:
The thing is, I grew up on the PS2, so the PS3 just seems like a logical next step. The system is marketed pretty good too, with the whole media thing in one package is great.. one unit on my flat panel to play movies and play games. It sounds really cool.

Same here.  And my PS2 is still going strong, but when it fails, and it will fail (the tray is starting to have problems), my library is unusable until I get a PS3, because I'm not going to buy another PS2 like so many people have (ie, everyone I know who has a PS2)

 

HELLFISH said:

Good things about PS3 I'm thinking about: DVD player / PS2 compat / 2008 lineup will most likely be a lot better than now.
Good things about wii: It was a lot of fun, but I'd need to keep my PS2 and get a DVD player too.

I think I'm going to keep saving and think about this a bit more.

Huh?  The PS2 is a DVD player, why would you need another DVD player?  Or did you mean Bluray?

Anyway, here's my thoughts.  Your decision has probably already been made for you.  You saw a Wii in the wild, and you didn't get it.  You've missed your chance.  Most people don't even get to see one in the wild.  Your chance of seeing another before 2008, almost nonexistent.  Keep saving for your PS3.  

Personally, when budget is a big factor, I  would go with the Wii.  Since you've experienced it, you know you can get games now that you know you'll enjoy, play them, and you can patiently wait for the PS3 to drop in price and for a lot of great games to come out on it in 2008 or 2009.  When that happens, you can snag a PS3.  That happens to be exactly what I did/am doing.