Most Sony TVs have a "Game" setting either in the picture mode or when you assign an input label. The "Game" setting basically drops the contrast noticeably so as to prevent burn-in. Most of the newer generation of game systems don't have too many things that are static in the image, so as longs as he doesn't leave on pause mode for hours on end, you should be ok. Be sure to switch to "Game" mode if you do decide to let him play the PS-2 on the new set. If it doesn't have a "Game" mode, just lower the brightness and contrast a bit. Use your best judgement.
Setting the Video input label to "game" really does that? I always thought that a video input label was just that...a label (the exception being receiver on the HW40 TV's where it doubles as a channel lock)
Believe it or not, Sony does base some settings on what the input is labelled. For instance, on most sets if you set an input label to "WebTV" that will also disable scan-velocity modulation (which can add nasty effects to text). SVM can also usually disabled by setting the picture mode to "Movie", but that also lowers brightness.
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