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I didn't really hit the outdated tech as sky render has said, but yeah, the PS2 was outdated, because the GameCubes tech (from only a year later) is like 1.5 times the power of the PS2, and the Xbox blows both of them away. And like others have said, the PS2 has lasted (and stayed strong) a lot longer than those other two consoles even with it's more "outdated" technology. See graph below:

 

  6th Generation
  Dreamcast Specs PS2 Specs GameCube Specs Xbox Specs
CPU 32bit 128bit 64bit 32bit
CPU Speed 200 MHz 294 MHz 486 MHz 733 MHz
GPU Speed   147.5 MHz 162 MHz 233 Hz
Memory Bus Bandwidth   3.2 gigabyte/sec 2.7 GB/s 6.4 GB/s
Main RAM 16 MB 32 MB 43 MB total 64 MB total
GPU RAM 8 MB 4 MB Included in above included in above

 

I got most of this info from wikipedia (shoot me), but it should be pretty accurate (i found a few other sites to back it up).

Important to note that the GCN and Xbox GPU ram was included in above, which was suppose to make it easier to program for, and also you could use the RAM as you saw fit, where as the PS2/DC didn't allow this, meaning if you didn't need all 4 MB of GPU RAM on the PS2, it was wasted. Not that big of a deal, but... well Nintendo built the GC as an easy system to develope for. Didn't help it much though.