*Lets face it the PS2 needs to go*

[Kantor]

The PS1 sold alongside the PS2 for six years.

No, the PS2 does NOT need to be discontinued, not while it's a viable, successful, profitable console which still sells reasonably well. Nobody will choose a $300 PS3 when they no longer have the opportunity to buy a $100 PS2. They're far more likely to go for the $200 360, or $200 Wii. the PS2 cuts into Wii60 sales, not PS3 sales.