I don't see the Wii passing the PS2. For several years of the PS2's life the only competition was the Gamecube (and maybe some other system I can't think of the name of that really really REALLY bombed). The Wii has a surging PS3 and a 360 that had a years head start on it. Also, the demand for the Wii will taper off, it will not sell out within hours of going on shelves for years to come.
I know that the Wii fan boys will disregard graphics, but if you look at FF10 graphics and then FF12 graphics, there is a big jump there. There is no reason not to expect something different in the graphical capabilities of the PS360 compared to the Wii. And by then both the PS360 will have dropped prices significantly and what are people going to buy, a game system that puts out good graphics for $100-$150 or a game system that puts out jaw dropping graphics for $50-$100 more.
Pretty pictures will sell games and systems compared to what else is out there. To go back to the FF10 and FF12 analogy, if two games came out at the same time and one had FF12 graphic pictures on the back and the other had FF10 graphic pictures, the "casual" gamer would buy the FF12 game because it would look like the developer put more time and effort into the game.
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