Didnt notice any price drops on PS2 games, just the NEW HIGHER prices on all the new PS3 games makes it seem like the PS2 stuff is a deal.
Just going by what happened with the XBOX/360
360 came out prior to last XMAS and all the latest games are still coming out for the XBOX, but it is pretty much the last set of games set to be released since it is hard to even buy an XBOX new in package nowadays. I expect the PS2 would get a similar(possibly better) phase out period.