Well, we all knew it had to end – the mighty PS2, one of the greatest gaming consoles with perhaps the best console library of all, has finally begun to fade into sunset … as the Playstation 3 shows signs of ascendancy a mere 3 years after introduction (that is sarcasm, btw). Oh, and what of the ‘Nintendo Handheld Killer’ Sony PSP, that system that was going to take the world by storm due to superior technology, that only a few days ago John Koller said was benefiting from Apple’s iPod and iPad moves to gaming?

Sales of the PSP are in the toilet.

Based on year-on-year sales so far, even if the PSP matches last years Q4 sales it would see a drop of 20% in terms of worldwide sales. Wow! The PS3 is seeing a run-rate ~35% INCREASE in sales, and even the PS2 is likely to see sales increase by ~7%.

No wonder we’re seeing rumors about plans for a ‘PSP Go Relaunch’!

Don’t get me wrong – I have stated my love for my PSP Go multiple times. I now avoid UMD games as I really prefer the new system. But Sony has created a problem for themselves, as not all new games make it to the PSN Store, and therefore are not available for the PSP Go. Also, the pricing on the PSN store is widely seen as ‘way too high’. I would say that rather than take away Apple customers, they are being squeezed by Apple and Nintendo on both sides.

As for the PS3, it is clearly seeing benefits from the lower price, release of the PS3 Slimline version, more great games – ones that are exclusive as well as most that just look better on the PS3, and so on. It is not likely to overtake the XBOX360 for 2nd place this console generation, but at least it is no longer the laughing-stock it was for so long after launch.

Finally, the Playstation 2 is really starting to head into the sunset. Of course, in contrast Microsoft and Nintendo killed the XBOX and GameCube pretty much the same day they introduced their consoles, but the PS2 has sold amazingly well – and the software sales had really kept rolling until this year. Of course, there are few new games coming out for the system anymore, and the majority of what is released are games that come out for multiple platforms that the publisher knows will be attractive to the install base.

Source: Sony via Joystiq