PS2 is making enough money to make up for the losses from the PS3. Sony has to get some magic out there to get the PS3 to really sell. A God of War 3 maybe? I would have made God of War 2 a PS3 release. That would have sold. he he.
Ps3's sell for a loss, Sony sells them less than the cost price. Last I heard they take 150$ hit on each ps3 sold, but they make up for it from peripherals and software sales, and ofcourse also PS2's.
The PSP can't match up to the PS2's immense library. Very few gaming systems can. For that alone, the PS2 is the better choice. Not that it really matters anyway. Most retailers here peddle the same shit regardless of whether it is the PS2 or PSP.