By that logic Sony should have stopped production on the PS1 the moment the PS2 was released, and yet it wasn't until 2006 that the PS1 was discontinued, the same year that the PS3 launched.
By the end you could get one of those mini PS1 units for like $50. At the of PS2's life, I think it was like $99. Meanwhile PS3 never officially went much lower than $200 while the PS3 with a HDD stayed around $250.
Now we are nearing the end of the 8th gen and they're still officially $299. I get the impression there is no desire to sell hardware at a low price anymore. They just want people to move to the next console.
River City: Rival Showdown for 3DS (3/5) - River City: Tokyo Rumble for 3DS (4/5) - Zelda: BotW for Wii U (5/5) - Zelda: BotW for Switch (5/5) - Zelda: Link's Awakening for Switch (4/5) - Rage 2 for X1X (4/5) - Rage for 360 (3/5) - Streets of Rage 4 for X1/PC (4/5) - Gears 5 for X1X (5/5) - Mortal Kombat 11 for X1X (5/5) - Doom 64 for N64 (emulator) (3/5) - Crackdown 3 for X1S/X1X (4/5) - Infinity Blade III - for iPad 4 (3/5) - Infinity Blade II - for iPad 4 (4/5) - Infinity Blade - for iPad 4 (4/5) - Wolfenstein: The Old Blood for X1 (3/5) - Assassin's Creed: Origins for X1 (3/5) - Uncharted: Lost Legacy for PS4 (4/5) - EA UFC 3 for X1 (4/5) - Doom for X1 (4/5) - Titanfall 2 for X1 (4/5) - Super Mario 3D World for Wii U (4/5) - South Park: The Stick of Truth for X1 BC (4/5) - Call of Duty: WWII for X1 (4/5) -Wolfenstein II for X1 - (4/5) - Dead or Alive: Dimensions for 3DS (4/5) - Marvel vs Capcom: Infinite for X1 (3/5) - Halo Wars 2 for X1/PC (4/5) - Halo Wars: DE for X1 (4/5) - Tekken 7 for X1 (4/5) - Injustice 2 for X1 (4/5) - Yakuza 5 for PS3 (3/5) - Battlefield 1 (Campaign) for X1 (3/5) - Assassin's Creed: Syndicate for X1 (4/5) - Call of Duty: Infinite Warfare for X1 (4/5) - Call of Duty: MW Remastered for X1 (4/5) - Donkey Kong Country Returns for 3DS (4/5) - Forza Horizon 3 for X1 (5/5)