Nah, I think it could work.  The fanbase is ridiculous, and people who don't wanna spend money will have to decide between Wii and PS2.  I dunno, change the trend you know?  If Ninty could do it..................... I think Sony shouldn't just let the biggest base ever, you know........dwindle...................

 Sony brand ballistic missiles.

http://news.zdnet.co.uk/hardware/0,1000000091,2083302,00.htm

they probably have alot of unnannounced stuff going on.... theyve been hinting at that unnannounced stuff since last july... and again back in december..so my bet is that they have some juicy plans for ps3 owners.. i hope anyway....

I used t have a PS2. And I don't have a PS3 yet... I will let you know how their plan works first hand.

 I could see some Japanese developers still developing on it if Sony still supported it.   Ala the Saturn.

I mean 360 support is non existant, PS3 support is risky.

So outside the Wii and handhelds, developers might go to PS2 if they want to diversify their lineups.  Maybe even a few Wii/PS2 ports here or there... etc. 

It's not that they'd want the ps2s back, it's that they want those PS2 users to get PS3s. If they give a $50 discount for trade-in it's basically the equivalent of a free game. After that they've got that customer for the generation. They're going to buy more games and peripherals - all profit for Sony and well worth the initial $50 hit. A trade-in program very definitely makes sense.

As if PSTHREE didn't warrant enough to upgrade from PSTWO.

discountinue ps2 support. stop making games and consoles.. but they wouldbt be fufilling there 10 year promise....

they just need a:

price drop at least by 50 bucks.
backwards compat in the 40gb model
ps2 games need to be continued on the ps3 like gta gt gow ff mgs socom etc.

by the end of 2008, everything should be going as planned for the ps3 and the userbase shuldnt be getting anymore painful delays. i.e home, mgs4

I think the majority of the PS2 userbase has already migrated to either a PS3, Wii or 360. I highly doubt that with all the great software out already that very many gamers are still waiting to make a decision. Its fairly foolish in a business sense to stem your success on a market that may or may not be there.

I doubt that the Wii could have sold as many units as it has without some of the PS2 fanbase, same can be said for the 360. This is furthered due to their prices in conjunction with PS2 in its prime. (Wii $249, 360 $279, PS2 $200~ fairly close)

Sony should focus on further increasing its appeal through new IP's, great software and improved online service. I forsee Sony seeing great success this year through these things and not due to a reliance on a last gen console market but thats just me.

Another avenue is another price drop as both the Wii and 360 are positioned to do some at some point in the near future.