From biz.gamedaily.com:
[QUOTE]
This new model does not contain the PS2 chip and will not feature backwards compatibility through software emulation either. SCEE said this reflects "both the reduced emphasis placed on this feature amongst later purchasers of PS3, as well as the availability of a more extensive line-up of PS3 specific titles (a total of 65 titles across all genres by Christmas)."

GameDaily BIZ also contacted SCEE spokesman Nick Sharples who told us, "We have made clear on many occasions that our priority is on developing innovative new features and services for PS3 and not on backwards compatibility. The 40GB model no longer contains any elements of the PS2 chip set which powered backwards compatibility in previous models, and is therefore only compatible with PS one titles."
[/QUOTE]

Full Story: biz.gamedaily.com

Discuss on our forums: forums.ps3scene.com