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Mind u, the PS2 was rushed.. badly.
SonicRav
I don't quite know what we would see on it but hey, maybe a bunch of sequels. The thing that gets me is that there are loads of people with game Ideas, just look at the forum, and no BIG names are interested in taking them up on the idea. So we might see Virtua Fighter 7, having said this the Gamecube could be going the same way with Rare having secured 2 possible titles for a Conker's Bad Fur Day sequel: Grabbed By The Ghoulies - (Ghost Theme?) and Conker's Other Bad Fur Day - (Very Original). But back to the topic, the Playstation 3 wont be here for another 3 - 4 years from now and so I wouldn't worry about buying PS2 games, and plus with the compatability we have seen from Sony so far you shouldn't have any problems even playing Spyro 1 on you PS3...
The Game
It seems gaming and hardware is the only industry where inflation doesn't have an affect - due to all the advances in technology and all that.
Anyway, PS2 would be more appealing at £240.
Dan
On a serious note though, it could also signal the start of yet another next gen race. If Sony are wise, they will make it more backwards compatable than the PS2 was, i.e. it will play 100% of PSX and PS2 games, therefore allowing current PS2 users to continue buying PS2 games with no worries.
I'm surprised that since the press releases on the PS3 that Sony haven't yet confirmed this, as it will surely affect sales of current PS2 titles as evidenced by what you have just said in the initial post.
Still, I think that we are looking at a good 3 years at least before the console hits the high street in Tokyo, and 4 years before it gets to the UK, so developers aren't going to be too troubled by the news.
Now then, the fun part. Are they really going to call it the PS3? Or are they going to call it that but just use a mirror image of the 3 instead of the normal one.
If the PS2 was the third place, is the PS3 the fourth place?
And won't this confuse the less intelligent consumer? I don't think they'll call it the PSIII either, Pentium might have something to say about that.
In Russia, the word three translates into 'tree', so in Russia that's what they'd get, the PS Tree. I'm starting to ramble now so I'll stop.....