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Sony COULD continue to support the PS3 long after the PS4 comes out but they won't.

It's simply really. The PS2 was so successful and still sells today because it has wide appeal amongst casual gamers - who are often the last to purchase a system. PS3 is a core system in every respect. As soon as the next gen launches the PS3 audience will very quickly abandon it for the newer model and the PS3's sales will drop like a rock because casuals gamers have no interest in it.