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I think they're working on Killzone to become their big shooter franchise. What they need now is their own Final Fantasy/Pokemon/Monster Hunter. The Legend of Dragoon is a nice IP that they could work with, but they'd need to form a great internal team to do so, like they've done with Polyphony and Team ICO.

And I think Killzone 2 will do a bit more than 3 million. It was tracking right along World at War the first few weeks, and then fell below WaW mainly because WaW enjoyed great legs from the holidays. WaW will sell at the very least 4 million lifetime (though it's legs down the road probably won't be as strong as CoD4's, given the quality of each title), and Killzone 2 should come near that (I'm thinking no lower than 3.5 million, even if it's due to bundles). It'll probably have a decent first holiday season later this year to help it along.

Shooters generally do better numbers on the 360 (especially CoD) because of the 360's exceptionally strong presence in NA. It's no coincidence that all of teh 360's top sellers are shooters.

Sony has a decent presence in Japan, and they need to capitalize on this with a strong JRPG (which should sell well in Japan, and the rest of the world, like GT). They need something more than Level 5's "pretty good" ARPGs. They need something with good gameplay, a great story, and extremely high, Final Fantasy level production values.