8Always_Hard8 saidI think the only thing i HATE about the PS3 is the fact you cannot play any PS2 or PS games on there... LAME
Yeah, that's pretty ridiculous about the new SKUs. The good news is that they have achieved "software emulation" (meaning they don't need the Emotion Engine chip that was in the PS2 and was in all the earlier PS3s) so they could potentially add that in in the future as a firmware update.
My vote is with 360, with built-in Netflix streaming (you have to get a disc in order to do it on PS3--wtf?) and also because of Project Natal (the motion-tracking camera control scheme they've been working on). There's a good chance Microsoft will announce a new Xbox this year though; it's been 5 years since the last, and that's usually the product cycle for systems, though that's definitely been slowing down as the generations have gone on.
Though if you're apt to "hacking," you can modify a Wii to copy to and play games from a hard drive . .
It's highly unlikely that Sony will be adding firmware for PS2 backwards compatibility anytime soon. They were hanging their hat on that for awhile with the original PS3 skus, but PS3 sales flopped, anyway. MSFT gave up on the b.c. issue, and are now making some nice coin on the Arcade Hits DDL (Halo, Psychonauts, etc.) Sony will do the same thing, releasing greatest hits on PSN. To offer b.c. would mean a loss of revenue, which Sony cannot afford to do at this time.
There's no chance that MSFT will announce a new Xbox platform this year or next. The product lifecycle for platforms vary. This generation will see a much longer lifecycle than last, though Nintendo will likely release an upgraded Wii to better compete with Sony and MSFT. Wii sales are steadily on the decline (Dec.09 sales weren't bad, but third-party software sales continue to suck for Wii).
And please don't mod your systems, guys. Piracy is bad for the industry, especially right now. It's theft. Plain and simple.