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They still have a lot to learn from Sony clearly who's been doing nothing but putting out exceptional console one after another.
The PS1 was amazing, the PS2 is the best selling console of all time and they're still profiting from it.
Plus even though the PS2s had some trouble reading discs it was easily fixed and didn't involve actual hardware failure like the 360.
The slimmer PS2s aren't targeted for console gamers that are on the up and up, they are targeted to new gamers, I sell them all the time and not for the big games, for the bargain bin games, for the childrens games.
Microsoft could have sold a bunch of revamped slimmer XBOXs and stuff if they had at least tried. There are plenty of good games that would have sold.
If they want to even get past the Wii, they'll have to add more family-oriented games to their mix.
The PS2 was a great games console, and any console that achives the same success will be great.