Sony needs the PS2 now to stave off financial losses-they just bought BMG in whole for $900 million.  http://www.forbes.com/feeds/ap/2008/08/06/ap5293690.html  I'm guessing this is to give a boost for the consumer interactive electronics division.  Anyway, if LBP was released for the PS3 and later released for the PS2 for the above reason, what would happen? 

Every PS3 would explode, because of their needless-ness.

they wouldnt do it because they need to push the ps3 not the ps2, they might release another version for the psp i guess but no ps2 because they are targeting their good games to their current generation console.

in other words it would be one less reason to get a ps3 so its not happening..

Well it would take away the "share" part of the game.

This. What reason is there for someone to buy a PS3, if the same games are released (albeit after a delay)?

That would be so damn retarded. I mean it would help out to expand the audience but that game was made to be developed on the PS2 it was made to be on the PS3. So I know Sony wouldn't do something stupid like that.

Oh currently?

It can't... from what I can tell.

The graphics look too good... and i doubt it could hande the engine though i may be wrong.

Sure you could downgrade them, but i don't think it will sell much better on PS2 currently then PS3 anyway.

I think that deal isn't about financial problems, but more about being able to having complete say over the artists for various ventures.

Well this is pointles they will make the 900 mil back from what they bought alone... Next I'm not sure on this but does the ps2 have hd graphics? LBT is hd.

See this is how things work - Companies spend big money on things they know will pay off themselves. Like google and youtube, they made all their money back in under a year!

Why does it matter? The PS2 version would be pretty much gimped without the online, and I guess graphics would be another reason it is gimped for some.