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Rain2 said:
To me, it was always clear they were trying to get both. Iwata said they will have both deeper (more complex) experiences as well as wider (reach more people) experiences.

I think they tried to have a PS2, a console that appealed to everyone. Just, they failed at it.

I think it's more likely they wanted more of a console DS. Something that was primarily aimed at casuals, but unlike the Wii still got some better third party support.

Sony wasn't dumb enough to gimp the PS2's graphics to PSOne level, if they had they would've sold 20-30 million units instead of 150 mill.