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The PS2 is far too expensive and the DVD drive is merely a gimmick.
As for backwards compatibility, the Bleem! Playstation emulator
for Dreamcast should be available soon, putting pressure on Sony once again. With Microsoft and Nintendo also starting to compete in the console wars this can only be a good thing for the gaming industry.
Technically speaking, the PS2 is superior to the DC, shifting around 7 times the number of polys, plus a few other tricks. But if DC offers you the games you want to play, that's fine; why do people feel the need to put down the opposition?
The inclusion of a DVD drive is far from a gimmick. I would offer that the primary reason for its inclusion is its data storage capacity of several gigabytes. If the softco's get their collective fingers out, this should make for some truly huge, involving and amazing games.
Remember that the DC is already in to its 2nd generation of games, and the PS2 is just beginning. Some of the latest DC games do look beautiful. But the technology in PS2 should mean that content and appearance of its 2nd generation games is even better, particularly when the softco's start using the built-in anti-aliasing.
IMHO, had Sony released a machine with a DVD drive only for its capacity and with no DVD-Video capability, they'd have been crucified; therefore, I see the DVD-Video capability as an added bonus. If you are that fussed about DVD picture quality, chances are you already have a decent DVD player anyway. I know I have. Even my 500MHz PC gives a poor quality DVD picture, because I don't have a hardware decoder.
Jap PS2's have software DVD decoding, so the picture is bound to suffer. For UK/Euro/US units, the DVD capability is in the hardware. As far as I know, no-one has yet seen a UK-spec PS2 running a DVD with the new hardware decoding. If so, claims of poor picture quality - while they may be true of Jap units - will not necessarily apply to us. My DVD player is a Sony unit, and the quality is excellent. Although I don't expect the PS2 to have all the same bells and whistles, if the decoding routines are the same, the quality will be great.
As for Bleem! - well, the DC version will have to be several hundred times better than the PC version to make any real impact. I've tried Bleem! on my PC and have yet to get it to run any game without any problems.
I considered an N64, but there's only two games that interest me - Golden Eye and Perfect Dark - so it's not worth the money to me. There's nothing on DC that I want to play, though it is a nice capable machine, technically speaking.
At this point in time, I'd have to say that I wouldn't buy an X-Box on principle; I'd consider a Dolphon/StarCube/whatever it's called this week if, and only if, it has games I want to play. If it turns out to me another stomping ground for Pokemon/Mario/Donkey Kong, they can keep it.
At the end of the day, buy what YOU want and what makes YOU happy. If you don't like another manufacturer's product, why tell the world about it? It's very immature. Do you have a TV? What make? Sony? LG? Philips? Sanyo? Do you post messages on other discussion forums claiming that "My Sanyo telly is better than your Philips! Nah nah!" ??? Chances are you probably don't. A console is just another piece of consumer electronics at the end of the day, so why treat it any differently?
The PS2 is far too expensive and the DVD drive is merely a gimmick.
As for backwards compatibility, the Bleem! Playstation emulator
for Dreamcast should be available soon, putting pressure on Sony once again. With Microsoft and Nintendo also starting to compete in the console wars this can only be a good thing for the gaming industry.