PS2 sales were slowly dying in US, I'm sure they'll still make a small profit off of PS2 hardware which is better than nothing they'd get if they allowed PS2 to die. I really don't see PS2 and PS3 in competition with each other at all, $99 last gen console isn't going to eat into the sales of $399 current gen console, they're at completely opposite ends of the market.
I doubt it will outsell PS3, but it should give it a short term boost and extend it's life somewhat.







