The Playstation 2 was featured inside this cool hi-tech pyramid thing. They were showing all the demos that were shown in Japan, plus a playable demo of Gran Turismo (not terribly impressive, imho.) Originally Sony had said they weren't going to have the Playstation 2 at E3, but I knew they'd change their mind when they realized they needed to offset the excitement over the Dreamcast. A Sony employee who was sitting next to me on the flight down to Los Angeles told me the decision to show the Playstation 2 was made 6 days before E3. I spoiled the PSX2 appearance to all I could in the few hours remaining on Wednesday night. =)