] More details about the highly secretive "Cell"
] processor--slated to power the upcoming Sony PlayStation
] 3 game console--emerged Monday. ... This puts the earliest
] date of release of the PlayStation 3 at late 2005, or more
] likely 2006, considering the amount of time needed to
] develop the process technology and mass-produce the new chip.

Looks like the PS2 is going to be around for a couple more years.

Sony sinks $1.6 billion into 'Cell' plant | CNET News.com