RSS
Kotaku
Well, that's one way to handle the backwards compatibility problem. Via IGN, Japan's Ultra One magazine is claiming that the PS3 will contain the PS2 core chipset. The plan is to continue working on a software emulator; once that is perfected, they'll dump the PS2 chips for future iterations.
An interesting idea, but it introduces a weird problem: this means that earlier PS3s will be fully backwards compatible where as later model PS3s will likely not be, as PS2 games will be running under emulation, which always tends to be a bit finickier.
Too bad they can't cram a PS1 in there while they're at it.
