Is this a sign that Sony knows the PS3 just can’t take another price cut and instead decided that since there are tons of games still coming to the PS2 that they should cut the price of it?

Sony Computer Entertainment America (SCEA) today announced that PlayStation2 will be available starting April 1 for $99.99 (MSRP).

"PlayStation 2 set the industry standard for worldwide mass market adoption and is a clear embodiment of Sony’s commitment to platforms that deliver 10-year product lifecycles. It’s a tribute to outstanding technology, great consumer value and unprecedented development support that we’ve now been able to do twice what no one else has ever accomplished," said Jack Tretton, president and CEO, SCEA.

Whoa, wait a second. The PS2 wasn’t set up as a 10 year lifecycle Jack, you just got lucky on this one. I’m more interested in how you’re going to make up the rest of the 10 years of lifecycle on the PS3.

"Demand for PlayStation 2 remains strong throughout the world, and the new $99 price point will bring in new consumers who will discover how PlayStation platforms are an outstanding choice for their gaming and home entertainment needs. Just as PlayStation 2 is delivering on a 10-year lifecycle and helped expand and solidify the DVD format for home entertainment along the way, we believe PLAYSTATION 3 offers the same promise by helping secure the Blu-ray format and delivering unprecedented value as the total home entertainment solution for the next decade."

It offers the same promise? Don’t people have to to actually BUY the unit for it to have that potential? And isn’t there a new format already in the works that should trump Blu-Ray?

SCEA will continue to support PlayStation 2 system with new titles that appeal to families and casual gamers looking for social entertainment experiences. First-party games such as MLB 09 THE Show and MotorStorm: Arctic Edge as well as major franchise titles from SCEA’s publishing partners demonstrate the continued growth of the platform’s library of content. In addition, more than 250 best-selling PlayStation 2 titles have achieved "Greatest Hits" status, providing consumers with plenty of games to choose from at value pricing.

Last year, PlayStation 2 became the first system in history to reach the 50 million sell-in unit sales milestone in North America, making it one of the most successful technology products ever. PlayStation 2 system was previously available for $129.99 (MSRP).