Ok, I have this document saved on my PC that I wrote in response to SW posts over year ago, so some of the things are dated but It sitll fits as I am seeing the same things brought up:

just remember original date of this post should be winter '07/spring '08

No more support for 360 after 2009

It seems this totally illogical statement is making a huge comeback. I have seen 3 or 4 thread in the last three days with some reference to it. Can we please just kill this mistaken belief already. The reason Sony still supports the PS2 and MS stopped supporting XBox is very simple:

The PS2 is a cash cow for Sony so why would they kill it off? They own all the components so were able to decrease costs to the point where they are making a profit while selling it for $129. The original XBox was made of all third party components which MS has no control over - therefore making it unprofitable even at$170, so of course they stopped production when the 360 began.

With the 360 MS owns the components and will be able to reduce cost in the same way as SONY did with PS2 and will with PS3.

Do you really think if the PS2 was unprofitable at this point Sony would still be producing and backing it?

The fact is PS2 is at this time subsidizing the PS3, why would Sony kill off what at this point is keeping them afloat.(but to some extent it may start backfiring as the PS2 is still more popular). On the other hand original Xbox at this point would be an anchor around MS's ankle. 360 after two years has become profitable on the hardware side, they will not kill it off immediately as it will subsidize the next Xbox in its first two years of existence.

The only reason the PS2 is still supported is because it is profitable, not because Sony loves you.