To ensure complete backwards compatibility Sony isn’t going with Microsoft’s so-so idea of an emulator, but actually putting an entire PS2 chipset in addition to the PS3 hardware inside the box. So, that means that the PS3 will have a PS2 as well as a PS3 in it. The lengths people go to to ensure backwards compatibility.
http://www.engadget.com/2006/06/05/reason-437-for-all-that-bulk-ps3-has-a-ps2-inside/
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