Yep, it’s really possible.
Selling for $39.99, the Xploder HDTV Player for PS2 is really just a cable and a disk with a bit of software. You plug in the included component RGB cable, boot up using the Xploder disk, select either Enhanced Definition, High Definition or VGA mode (VGA cable sold separately), choose a resolution, and swap the disk for your favorite DVD movie or PS2 game. Voila – High Def! See, no need to get a PS3. (It doesn’t really make you feel better, does it?)
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So did Sony do this to sell more PS2s for the holidays? I bet they have a bunch to sell. Its like having a bunch of one year old cars, great deals waiting to happen!