Everyone's favorite lippy Microsoft blogger Ozymandias offers his two cents on the gimped backwards compatibility for the PAL PLAYSTATION 3. He writes:

Remember the PS3 price cut I predicted back in January? This is likely a step on that path. I believe the PS3 enabled backward compatibility by basically including PS2 silicon in the box. That hardware has likely been removed to reduce costs, and the PS3 is now moving toward software-emulated backward compatibility. Notice the new focus on firmware upgrades for enabling backcompat? ...All of which means the backcompat story is likely to be very similar between the PS3 and the 360 going forward.

Interesting theory. Brian Ashcraft

Ozy On PS3 BC Reduction [Ozymandias]

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