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Why is there a presumption that PS2 owners are just waiting for a price drop to buy a system that doesn't play their PS2 games? Outsides of the name (and playing original Playstation games), what does the PS3 have in common with the PS2? You can't use your PS2 accessories on the PS3, nor can you play your PS2 games on.

$50 isn't going to make much of a difference. $100 might a bit more. The key is to hit the two price points: $200 and $100. These have historically been the price points that made the difference. Ok, maybe make it $250, if you look at what the Wii is doing.