The PS3 not performing as bad as some claim?

[MikeB]

@ robjoh Generally speaking I don't disagree with you, but as the PS2 still is a strong product and still generates Sony good profits, I don't think Sony should drop the PS2 this year, like Microsoft did with the original XBox when the XBox 360 was released.

Sony needs to move the PS2 crowd over to PS3 if they are going to get the increase sales that is needed to regain momentum and catch Wii and Xbox360.

I think timing is an important factor here. The market isn't ready yet to fully go PS3, but I think this may change in the course of christmas 2007 and 2008 when major titles have been released, like the new Final Fantasy and Metal Gear Solid. I do think a strong PS2 right now, does add value to the PS3 for the long run when the software emulation is mature enough. Fingers crossed for PS2 software scaling towards HDTV resolutions, maybe together with some additional enhancements.

At this point all three consols should have gotten price drops and redesigns.

Maybe, but considering there is much more cutting edge technology inside the PS3, I think there's relatively more room for redesign and cost reduction for the long run. IMO the Nintendo Wii already is somewhat of a redesigned GameCube. The XBox 360 can be cost reduced, but if they add a feature like HDMI 1.3 and maybe some other things to become more on par with the PS3 this may also result in additional production costs.