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It doesn't cost Sony nothing to include backwards compatibility. From what I've heard/read (someone please correct me if I'm wrong), blu-ray discs and DVD/CD lasers are different. Therefore there are two separate readers within the system that reads each, if this IS the case, then I understand the exclusion of backwards compatibility, but think it's absolutely foolish.
No, the real reason IS hardware based. In the launch console, it had the emotion engine chip (the PS2 CPU) and the GPU from the PS2 in addition to the PS3 chips. In the later renditions that were software emulation, it still had PS2 hardware. The difference is that it was missing the emotion engine chip, and only had the GPU from the PS2. So there was still PS2 hardware. Then, in the newest versions of the PS3, both the emotion engine and the GPU for the PS2 are completely missing.
So there is no 100% PS2 software emulation. Just PS2 CPU emulation, but nothing that emulates the graphics hardware.
Not that I think it was a good move on Sony's part. I have happily been playing through Metal Gear Solid 1, 2, and 3 as a way of building up to 4 since I never played these originally. I would never have bought a PS2 when I have a PS3. In fact, Backwards compatibility was key in my PS3 purchase to begin with. Glad I have a launch 60 GB, the best PS3 ever released (and I got it for $500 too.)
You sound like another disgruntled Xboxer trying to dis the PS3. Sorry, but it's the most versitile and powerful system out. That's just the facts. If $100 bucks in price difference is too much for you to handle, maybe you don't need to spend money on games. Not to mention that PSN is free of charge, so that's $50 less of a dif once you spend for XBLive.
Stop the hate... Love the PS3. It made me sell my 360 and I've never had a regret.
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