From joystiq.com:
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In an interview with Newsweek, Sony America CEO Jack Tretton explains why the 40GB PS3's lack of backwards compatibility with such simple math, it's hard to argue. Tretton breaks down the math all fancy like and makes intelligible that which we've been missing this whole time. The old 60GB PS3 with full BC was $600. The new 40GB PS3 with no PS2 BC is $400. By adding the cost of a PS2 at $129, the total for the two consoles is $529 ($70 less than the original 60GB price). Tretton says, "I've got two machines that do everything the same machine did a year ago at $599. So it's hard for me to see that as a negative for the consumer." That may be some fantastic spin, but at least it's not a lie. Of course, the math would be easier to swallow if the 60GB wasn't really $500, and if said consumer hadn't come to depend on the PS3's upscaling of old games.
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Full Story: joystiq.com | newsweek.com

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