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@greenmedic88: uhhh, where to start
1)The PS3 will not match the PS1 or 2 in any way. Those systems turned a profit and sold over 100million units. The PS3 is struggling to beat the N64. This claim is just plain silly.
2)"Replacement by 2010? No. Announced in 2010? No." How? This isn't an answer.
3)
"But SCE can't afford to lose money on a price drop." Production cost drops are specifically to address this issue, not to simply repackage a previous product in an attempt to extend longevity. Lower production costs, fewer components, overall reduction in size and weight equates to smaller, lighter packaging, reduction in shelf/storage space for inventory, etc. All have the same effect of reducing overall cost to deliver product to the hands of the end consumer.

Good point, but you didn't address the systems stand in the market (no one is). The system is behind and isn't growing. Your claim would only work is the system has more units sold then it actually does.

@txrattlesnake: How you came to that conclusion I will never know. You claim the 360 will be the one to get the boot when it sells less then the PS3, has more million sellers, and is in demand more for consumers. The PS3 is also costing the company an arm and a leg (the 360 was never meant to make money). Look here

http://vgchartz.com/hwcomps.php?cons1=Wii&reg1=All&cons2=PS3&reg2=All&cons3=X360&reg3=All&start=39453&end=39950&weekly=1

Your claims are crazy. The Wii is growing faster then the other two. The PS3 and 360 are growing at the same rate despite the fact the 360 has been out longer. The Wii, from January to May, is doing worse then last year, but coupled with that fact that in 08 it has Brawl, Mario Kart and Wii Fit, and this year, Punch Out, it's doing really well.

Your claims just don't match up with the facts.