they aren't going to discontinue the PS2 until 2010 at the very earliest. 10 year plan my friend. Its only 8 years and several months old now.

I bet after Christmas 2010 they start to phase out the PS2.

The PS2 has to end at some point. For all we know, this is merely a stepping stone to clearing out inventory, and when the inventory is cleared, the PS3 gets full software PS2 BC and PSN downloadable PS2 games.

It's good business, no matter what way you look at it. The cheaper PS2 will almost assuredly take more Wii and X360 Arcade sales than PS3 sales, even if its not very many overall.

I fully expect to see a PS2 boost in the coming weeks. Not bad for a console which has sold nearly as many units as the 360, in the same time frame, and probably commands a hefty % profit per unit.

I would be more inclined to think that PS2 owners (some anyway) who have been waiting for the price cut will cut there losses and opt for the 169 euro HD gaming rig.

Again just my take on it.

reask how does what you say make any sense? The PS2 is very much profitable and it helps support the ps3 indirectly by getting people into the playstation brand and helps it directly by having extra funds available.
PS3 is doing fine and has a huge lineup this year, I mean huge.

If they do drop the price I don't see it going any lower than 350$ and I really doubt they will before ff13 comes out.

I sincerely doubt that anyone who was "on the fence" will change their minds because the PS3 didn't get a cut today.  The only people who might be upset by that are probably already 360 owners, who want a PS3 as well.

Most console purchases are impulsive -- the decision is made right there and then.  The vast majority of consumers have no clue that pricecuts are impeding, etc.  PS2s will be sold today, at $129.99, at hardly a lesser daily rate than usual.  Tomorrow, however, the rate will increase -- not because people were waiting, but rather because the price is lower, and hence, more attractive.  Those extra people are going to come from those who are shopping, at that moment, in the store, weighing a PS2 at $129.99 (now $99.99) against a Wii at $249.99, a PS3 at $399.99, and an X360 Arcade at $199.99.  The PS2 just gets pushed even further into the "very affordable" range, and thus it will weigh heavier as a low-risk purchase.

Most consumers have no clue what VGChartz is, never read about game consoles online, and don't look at anything but the weekly ads, when it comes to price.

There's no arguing that sony is coming 3rd this generation. Focusing on ps2 sales- even if it is to generate revenue- is an odd move this late in the game.

Even if the price is 99 dollars, people can still get a ps2 for 70 easily. It's just a really odd move in my opinion.

Sony is still making money on the damned thing, and since keeping it alive means that the Wii is going to get PS2 ports from lazy devs as long as it is alive Sony is smart boost its sales a little.

Some of you are beyond intelligent thought.

Profits/costs.

PS2 profits help with PS3 costs, the cut might spur sales thus actually helping then with a eventual price cut for the PS3. The idea that PS2 will somehow hurt then and the PS3 is plain stupid. There is a 300 price difference, the target audience is night and day.

These thread titles are going to drive me mad:

"Are Sony"? Really? It would be "Is Sony Undermining the PS3?"

The PS2 is selling below even the 360 in japan  .. so sony are probably thinking: lets cut costs so that arcade doesn't eat into the few million sales we have in the ps2.

and then there is always customer loyalty. A million ps2's extra sold could translate to an extra 500k in ps3 sales after 3-4 yrs :)

Maybe not good in the short term, long term benefits seem good.