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The Wii plays GC games and the 360 plays original Xbox games, same as the PS3 plays PS2 games (though not the 40GB version, I believe?). The fact is that while the PS2 costs under 150 dollars, the PS3 nears the 500$ mark, reason to why Sony decided to support the console. People would much rather have the current gen console other than the PS2, GC or Xbox, but price is a mayor factor. The Wii is 250$, an affordable price, the original Xbox was 300$ when it debuted, not much different than how much the current 360 costs.

Price is a factor in this case. Why continue supporting a console (MS and Nintendo's case) that won't deliver ANYTHING new in comparison to its next console? There is NO reason to do so. In Sony's case, they have two factors: Price and brandname. The PS2 was very successfull and is still selling, Sony wasn't about to let the console go, GC and Xbox weren't very successfull.