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godf said:
Brand loyalty is massivy for sony amongst casual gamers in their teens and early twenties. Quite a few I've spoken to would not even consider the other consoles, and are just going to wait til the PS3 comes down.

This may change (if GTA4 is dramatically inferior for PS3 - and they realise this?), but it's a massive advantage for sony.

 If you own a PS2, the most natural console to upgrade to is PS3, I felt squeemish about upgrading to 360, PS3 just seemed more familiar (I had a PSP) but the difference between a PS2-3 is very big, the similarities are that they have the same type of controller.

Anyway, even without back-compat, brand is very important, because people have had so much fun on their PS2s, they think they will have the same experience on PS3