And the PS3 isn't performing drastically worse than its predecessor?
Yeah, the 'is too expensive' image of the PS3 will fade away, to be replaced by 'it's an X360, only not as good image' in America (and possibly Europe), and the 'PS3? You mean they released a 3rd one?' image in Japan.
Yep. Once the price barrier is lifted, there's little stopping PS2 owners from upgrading. The question is where they upgrade to, and in that regard, there's a heck of a lot stopping them from upgrading to a PS3.
If the same game shows up on two systems, and the game is virtually identical on both, I'm gonna go for the cheaper system, right?