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Bokal said:
I know they dropped it to cut price on the PS3.

But don't you think it was to keep the PS2 selling well too?

 

 PS3 is making losses and while PS2 is making profits, right? So every backwards compatible PS3 means a greater cost and a loss of PS2 sale. In other words, by removing the backwards compatibility, you're decreasing the PS3 costs and increasing the PS2 hardware and software sales (because new buyers are more inclined to buy software).

Its not that clear cut though. Removal of BC will have a negative effect on PS3 sales, though it is expected to be very small since people wouldnt buy PS3 to play PS2 games in the first place; but those who are split in between 360 and PS3 might choose 360 as the perceived value of PS3 is lower now, or maybe because they are pissed (also by the price effect). 



Playstation 5 vs XBox Series Market Share Estimates

Regional Analysis  (only MS and Sony Consoles)
Europe     => XB1 : 23-24 % vs PS4 : 76-77%
N. America => XB1 :  49-52% vs PS4 : 48-51%
Global     => XB1 :  32-34% vs PS4 : 66-68%

Sales Estimations for 8th Generation Consoles

Next Gen Consoles Impressions and Estimates