PS1 still selling well, 10 years later. PS2 is selling very well, nearly 5 years later.
Casual gamers, specially those who are in a bind for cash, will buy the cheaper console like the $99 PS2 and their discounted games over the newer $300 Xbox and their $60 games. They will know the PS2 can play PSX games coz by now, I\'m sure even the most busy moms will have been told this from their kids.
It\'s not a bad strategy for Sony although it may back fire and either way, MS loves both scenerios. This gives them time to establish their user base, pump out more games. They\'ll have games to debut on the PS3 launch and such.