The PS2wii idea is a nice brainstorm, but is not practical.

They're now going to promote both platforms, and tell developers to make PS2wii games to compete with Wii? I know the Wii is not as powerful as PS3, but come on.

The only end result would be customer confusion, and loss of confidence among customers and developers in the PS3 platform.

They are forgetting something very important: Blu-Ray. Sony cannot abandon the PS3 because it is also fighting another war with HD-DVD, one which could be worth as much as the videogame war, and one which is also totally dependent of the PS3 success. So no way that Sony is going back to the PS2.
Again, adding a Blu-Ray player to the PS3 was a bad, bad idea. Sony figured that out months ago, when they fired the "PlayStation father". They thought the PS3 could sell no matter what, and it could work as a trojan horse for Blu-Ray....

Options:

1. Decrease the price in 2008 when a lot of their good games release.

2. Make a wii sports like pack in game that uses the siaxis.

3. Make more games that apeal to everyone.

4. Create a new and unique idea.

5. If all the above fails (meaning they can't possibly beat the Wii or 360) then drop the PS3 all together and make new and better model of the ps2 but has the same price til the next-gen and start over from there.

You're not going to see the price go below $499 for a long time.  They've already shown that $499 is the breaking point and it's not going to below that until at the very earliest 2009. 

Useless idea unless they get a price that appeals to non gamers.  They're better off packing in BluRay movies (and better ones than Talladega Nights). 

A given, but they need more than just a good library if they want to come out on top.

Hadn't we already established this is Sony we're talking about and that just isn't what they do? 

They're never going to drop the PS3 (this gen at least) because they built it to be a 10 year system that acts as an entertainment hub.  Introducing a new PS2 won't really work because it will just turn out to be an accessory that at max three or four games will use and then it's forgotten.  the Wii works because the system was built specifically for the remote and they actually strongly urge developers not to make a Classic Controller only game.  

Also, there's not a huge reason to build up the PS2 since the PS2 is a success and has already served its purpose at getting Sony's name out there.  The thing they need to work on is the PS3 and do their best to come out over the 360. 

This is exactly what I have been arguing for.

The problem Sony have is the massive investment they have put into the PS3 - and risking losing it all.

I think you will see them more or less, stay their course - but maybe accelerate the development of their "PS4" (cheaper PS3, maybe with another controller and no BluRay?).

...

Again, I think its more possible for another company to jump into the fray and disrupt - i.e. a partnership between say Apple & Google, or IBM and Google (etc..).

If Ninty get their next handheld out before anyone else has disrupted the market - it could be Nintendomination for another 10-15 years.

That last option and option 2 were jokes. They won't lower the price below 499 til 2009 if that!? Well they could lower the 80 gig to 499 when those killer games release.

So Nintendo is banking on non gamers buying games.... if you look at the top games on the Wii they are very fun novelty games. They just do not appeal to most people that already like Video Games. The fact that Nintendo can not supply at least 15 million into the market by now is not a good thing. There are no part shortages and the Tech is not expensive. This is no time to Panic for Sony the PS2 is still selling very well so that shows that Motion sensing is not what is pushing systems it is Price and games.

Nintendo is doing a great job getting new people into gaming but how will say EA get those people's intrest into Madden instead of Wii Sports. For the most part these "newcomer" do not care about playing players in the NFL or Guiding a Franchise for 30 years. Most of these players enjoy short uninvolved games that offer a few moments here and there of quick fun.

This is not a Bash on the Wii but it sells to people that want Quick and quirky games. Nintendo will make a few more Grand Games like Zelda and Metroid but we will never see a God of War type story on the Wii. Final Fantasy will never be as big of a hit on the Wii as a Game like Wii Play.

I for one like my games emersive and to me that does not come from the type of controler in my hand it comes from in depth story intense action and yes difficulty (I don't want to be able to blow through a game just because the easier it is the more it will sell).

The Wii can NOT replace the PS3 or the 360 to me. It is not the same. They both play games on my TV but what kind of games. What kind of games in the future?

Eventually gaming will reach a point where brilliant level design and greater interaction through motion sensing technology merge. That destination is called virtual reality.

Nintendo seems to think one road has less traffic than the other, so it is going to try beat Sony and Microsoft to that destination using it.

The paths are somewhat divergant right now but remember - they lead to the same place. Only question is who reaches that pinnacle first - Ninendo, Sony and Microsoft.

If someone gets there substantially before everyone else, say goodbye to the 'three platform' era of gaming.

Killzone3, all those games appeal to people who are already anticipating the game. That does absolutely nothing to 'grow' the market. This is what many people, including Sony, fail to realize is what Nintendo is doing. Simply releasing games that the current consumer market is already waiting is simply feeding the same people you've been feeding for years. Those are just second (or 3rd, 4th, etc...) helpings for the same people. Nobody new to the table. The Wii is bringing new people to the table.

If you feed the same people, you stagnate. You don't grow the industry. Profit margins shrink considerably as the return on investment shrinks due to diminishing returns.

The 3 options are bad, sony wont do any of them, they are focusing on the playstation three as there main system, the only way it can close on nintendo and maybe even catch the lead is to release that 40gb fully featured $399.99 ps3, if they do not, probably if not this xmas, march would be there time to dominate if they are smart. The $399.99 price would increment sales rapidly, and as well as droping the prices world wide would help as well.