I don’t expect PS3 to catch up with the Wii soon, but what will happen after Christmas ‘08 when literally everyone will have a new flat screen and start to discover HDMI 1.3’s “deep color”, which only the PS3 can deliver? Will Wii’s low-price, fun-for-the-whole-family philosophy maintain its market dominance as the PS3 leaves it farther in the dust graphically and functionally? Will it be the Wal-Mart of consoles (cheap, but always the market leader)? Or will it catch up in features, power and quality, but price itself out of the lead? A gen-2 Wii with the features, power and video quality of a PS3 at a $600 price point could survive and continue to dominate the market if it has backward compatibility. I think that’s the main thing that hurt the PS3– PS2 compatibility took a while to work out and now costs a little more than the non-compatible system.