Sony’s PlayStation 2 has fought an uphill battle on its way to the top of this generation’s console lineup. Sega’s Dreamcast had the advantage of a full year’s head start and a fairly established user base, yet still failed to capture the market and eventually succumbed to the PS2. Microsoft’s Xbox and Nintendo’s GameCube are both more powerful, and while not failures by any stretch of the word they are also not anywhere as popular as the PS2, which hard numbers have proved.

Being able to play DVDs on the PS2 was one of the main reasons people chose this console at launch time. The PS2 offered a cost-effective alternative to DVD players of its time, and many consumers passed up the Dreamcast due to this feature alone, especially in Japan. Will the PS3’s Blu-Ray drive give it a similar edge in the market? The answer depends on Blu-Ray’s success as a next-generation media format, especially since it will be going head to head with HD-DVD. As it stands, it is possible that the PS3’s Blu-Ray feature might not be as big of a draw as the PS2’s DVD was.

Backwards-compatibility is an excellent way to encourage owners to upgrade their systems, as evidenced by the number of early adopters for the PlayStation2. This feature is almost taken for granted now that both the Xbox 360 and Nintendo’s upcoming Wii offer it. But the PS2 is partially responsible for starting this trend, and with good reason. Fortunately, the PS3 will allow backwards-compatibility not just for the PS2 but also for the original PlayStation. This could end up becoming a major advantage for Sony, given the tremendous number of games sold for both systems.

Sony should be commended for their excellent job in finding and keeping developers that helped create a gigantic library filled with an impressive number of exclusives. Their most important ally is probably SquareSoft. Such exclusive series as Final Fantasy, Kingdom Hearts and Dragon Quest may well be the reason Sony won the world and especially Japan, and by such a wide margin. Strong assistance from other big-name companies like Capcom, Konami, Namco, Sega and Rockstar has also helped. It seems we’ll be seeing continued support from SquareSoft, since Final Fantasy XIII will be a PS3 exclusive. Konami’s Metal Gear Solid 4 will also remain an exclusive for the time being, which is great news for Sony. Unfortunately, Sony has lost exclusivity with Rockstar, which should be a huge blow to them since the GTA series has remained one of the most popular and best-selling on the PlayStation2. Grand Theft Auto 4 is now set for a simultaneous Xbox 360 and PS3 release, and could therefore be seen as one less reason to commit to Sony’s much more expensive machine.

However, the PS2 did not get everything right. Sony will have to make sure to not only avoid some of their previous mistakes but also to improve upon them greatly. Right at launch, PS2's biggest problem was its weak software lineup. Although this did not stop people from buying the PS2, detractors were always quick to point out the platform’s severe lack of must-have titles for up to a whole year after debut. It’s possible that the PS3 may suffer a similar problem, since two of its biggest titles - Metal Gear Solid 4 and Grand Theft Auto 4 - are scheduled for release a full year post-launch.

One major hurdle Sony will have to overcome for their new console is online play. They’ve got their work cut out for them, since Microsoft has set the standard with their excellent Xbox Live (XBL). The PS2 never had a unified service, and not many games were even playable online. Sony has promised a service similar to Xbox Live called PlayStation Network Platform (PNP). Unlike XBL, PNP will supposedly have more free features including online playable games and video chat, as opposed to Live’s subscription-based format. As long as Sony delivers everything they’ve promised so far, the PS3 shouldn’t have a problem being competitive in this aspect.

Finally and most importantly, we come to the price issue. The PS3 will come in two versions (similar to the Xbox 360). The “cheap” model comes priced at $499, while the fully-featured model weighs in at a hefty $599, twice the launch price of the PS2. Microsoft has a golden opportunity to capitalize on this point, especially if they manage to price-drop the 360 before the PS3’s debut. Nintendo’s Wii will likely be in a completely different price range to begin with, so the comparison really puts Sony at a disadvantage here. Will gamers deem the PlayStation3 too expensive to consider?

Sony has done many things right with PlayStation. It’s currently the most recognizable brand name in the industry and has sold over a combined 200 million units worldwide. However, the path to success is not easy and the future is never certain. The PS3 has a lot of work and a lot of convincing to do, but Sony has proven itself more than competent through past examples. The PS3 is in good hands.