At this point, the article quotes Sony executives apologizing for the development, hinting towards the cost savings for Sony, and saying in a statement quoted by Reuters that “Rather than concentrate on PS2 backwards compatibility, in the future, company resources will be increasingly focused on developing new games and entertainment features exclusively for PS3”.

If I read this correctly, it sounds like Sony is eliminating many of the extra chips needed to guarantee hardware PS2 compatibility. The original story went along the lines that the PS3 would have the PS2 chipset inside, ensuring the PS3 could play all PS2 and even original PlayStation games.

But, it would appear that continuing to lose US $200 per console was starting to be too much for Sony to bear, and so the PS2 chipset has been eliminated as much as possible, replaced by software emulation which, it would seem even with the amazing power of the 9-core Cell processor, is either too difficult or more likely too fiddly and expensive to continue tweaking for optimal PS2 emulation.

Given that Sony really wants PS3 owners to focus on the new and upcoming range of PS3 titles, along with the digital media, home entertainment and computing features the PS3 offers, instead of worrying too much about PS2 and PS1 compatibility.

There are really only three things you can do about this. One is to get offended and assume that Sony is heartless and only out to rip us off, as seen in an article from Playfuls.com entitled
“Sony Offends European Gamers. Again…” - and to buy the PS3 anyway.

The second thing is to likely feel some disappointment at this revelation, but to simply accept that Sony has made this decision, which is undoubtedly saving them money and getting Sony closer to a break-even point where the PS3 isn’t losing money with each console sold, and playing whatever PS2 games do work through the new system while playing PS2 games that don’t on your existing PS2. If your feelings are stronger than that, go back to option 1.

Option one and two ultimately involve buying a PS3 anyway, whether immediately or at some point in the future. But there is of course another option - for that and the conclusion please read on to page 2.