anyone who didn't think this was going multiconsole is silly. at this point, this is barely newsworthy. Anyway, i don't think this hurts Sony all that much. The first game was solid, but there was nothing particularly great about it. the new one will probably be equally solid, but i doubt this game is the one that causes a whole bunch of people to lose confidence in Sony being able to provide a unique experience. A tad off topic, but worth saying anyway: The way i see it, Sony's getting just about every great Xbox game that's out. To make up for the XBOX exclusives (Halo, Gears of War), Sony's offering customers greater variety in the form of racing and action/adventure games (F1, Motorstorm, Lair, Warhawk, MGS, Uncharted). Yeah, I know Forza's coming out soon, but we know without a doubt GT5's eventually coming out, so considering the entire life of the consoles, the two games cancel out ;)
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
Essay Pro