The deal is actually not a bad deal if you're in the market for a PS3 and have an old PS2 console to get rid of. The PS3 will, after all, play most PS2 games just fine, so upgrading by trading in the old console makes a lot of sense.

The fact that retailers have begun doing deals like this surely signifies to stock surplus we have been talking about for a week now. PS3s are sitting in stores gathering dust, and interest in the console is reportedly nowhere near as high as the Wii.