The basic understanding is that Sony needs to make a bold move sooner than later, that's it. If they wait too long (i.e. do nothing for this holidy season) it puts them in a very difficult situation. If they're able to make a price cut along side the releases of some big titles this holiday season it could be the bump they need to start working back up the slide they've been in as of late. Trying to link the current situation of all 3 consoles with their previous family of consoles and determine some sort of trend is useless. i.e. "Microsoft has never supported their old console once a new one was released." This is only their second console for christ sake. Everything has been turned upside down this generation and none of can really say how it's all going to end up until we get there, it's all just speculation.
As a side note related to current demand, I was in Wal-Mart yesterday and did a quick spin through the game section and noticed that the PS3 section had been cut down to 1 half of a double wide display case. You could actually see they put the XBOX 360 sign-board right over top of the Playstation one. I don't think the 360 section gained much (it was 3 double wide cases), but the Nintendo cases pushed everything down. There were actually quite a few PSP games and PS2 games though (both had their own double wide case and both had a few games merge into the center PS3 case). It's getting pretty brutal, at least in the "casual/family oriented" sales land of Wal-Mart anyways.
Consoles Owned: Atari 2600, NES, Sega Genesis, Sega Saturn, N64, Gamecube, Wii, XBOX360
