PS2 isn't dead, because it thinks it has the power to take on this generation lol, in some ways, its doing a pretty good job. I would find it hilarious if companies were still supporting it, and it came out on top this generation as well hahaha. Let the old man have its glory till it dies.
Its not really harming SONY, they're generating millions of dollars still from the PS2, its would be insane to let it die. And its like the others are saying. Better they get a PS2 now than a Wii or 360. Sony kind of need the PS2 in the market to help secure console market shares anyway.

well soem how PS2 helps sony to do some risky stuff with PS3 without loosing money in game devision,,,so it's like an income towards pefrfecting PS3 and it's game line up

My spies within the industry (who shall remain nameless and, more importantly, faceless) tell me the center of gravity of PS2 sales has been shifting towards the middle-income countries of the world, i.e. with per capita incomes above $5000 and below $15000. Apparently, the PS2 is getting its second wind in places like Russia, Eastern Europe, Argentina, the big East Asian cities.

People Buy them just for specific games (Guitar Hero), It's Cheap, and games are still made for it.

Also, I think a lot of people are putting them in cars.

they guarenteed 10 years. I see it selling well until that 10 years is up. With the obvious yearly decrease.

Sony actually make MONEY off PS2 sales + software - why would they get rid of it?

The PS2 is an excellent console, is very cheap, and has extremely cheap games (I can get 3 PS2 games for $50 at EB - or 1 PS3 title for $100-$120).

The PS3 is NOT 3-4x "better" a console than the PS2. I would recommend a PS2 to a "new" gamer way before any of the others. It also has by far the best library.

(PS2 + game = $200, or PS3 + Prologue for $700 - hmm...)

@shams

Funny thing, i bought 3 ps2 games from eb last thursday

The PS2 is cheap, easy to find, and has lots of great stuff.  There's nothing I want from PS3 yet or anytime in the foreseeable future really, so that's a pretty easy choice for me.  And yeah I imagine since it's easier to find than a Wii, most casuals will just pick up a PS2 if they're really bored.  That's what I did, but I got a bit lucky and found a Wii soon after.  I spread my time on the two kinda equally I guess.

Plus, with the rather good PS2 sales numbers I bet Sony isn't complaining any.. some decent money while PS3 slowly builds up popularity or something. 

I hear you on that, in fact i haven't upgraded to the Wii yet because i just don't have the money, plus i think the gamestop factor is in play in this gen, lots of old used games for $10 and under is the right price for low income people such as myself. But when i heard that the ps3 40gig wouldn't support BC, i was like "Well not gonna get a PS3".  Also i would have to say that the lack of greatest hits software this gen (i.e. $20 new games) is a BIG factor. It's not all about hardware cost people.