Well, technicallt that 18 months until the PS3 would still fit in with their original plan of a console very 5 years. Since the PS2 was released in Japan in 1999, and NA in 2000...it all works out. Japan will get PS3 in 2004 (or early 2005) and we will have to wait a touch longer.
Personally, though, I think if SONY awnts to remain dominant and out of the clutches of Microsoft, they need to hold off on releasing specs. I guess developers need to know what they will be working with, but I'm sure Microsoft will be listening anxiously.
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