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I find this move to be brilliant but uningenious by Sony. Why not drop the PS3 price? It seems that they are strategically holding onto the PS2 until they can convince everyone to go to the PS3 (Which is obviously a tough sell, otherwise they wouldn't need to do this).

This is a classic market stalling tactic by a company that has dominant market share in the last generation. It does nothing for next generation gamers and the gaming market.