MikeB on 14 September 2007
@ tmbh
I know some firmware updates have improved compatability and picture quality but outside USA I think support is pretty poor at the moment.
A majority of legacy PSX and PS2 games already work fine on PAL PS3s. I own a PAL PS3 myself and I can confirm ICO, Ape Escape 2 & 3, Jak 3, God of War 1 & 2 all run perfectly as far as I can tell.
IMO an important indication is that the God of War games work so well, they are probably some of the most demanding PS2 games ever released! So I guess eventually it would be possible to achieve 99% legacy backwards compatibility.
game budgets are already way into millions with production times of several years etc.
The concept art is often of higher quality and then reduced to suit the target platform. For PGR4 it was announced that the graphics had to be scaled back due to DVD limitations, so that would actually involve additional production costs. Also recording music for 7.1 output quality won't cost much more than producing 5.1 audio once you already own the equipment.