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Thanks Dodece...I wanted to open a thread like this.

As I said in a previous thread, I believe the removal of the Backwards Compatibility is more a decision to ensure the longevity of the PS2 rather than an attempt to do a cost reduction on the PS3. I believe that since Sony always refers to the 10 year life span of their consoles that they intend this lifespan as a measure of sales and not as a measure of quality titles being made for their last gen machine after the next-gen has begun.

I think it's definitely bad PR for Sony, but I also think that the average PS3 purchaser doesn't care. They are not interested in last-gen. They want hi-def and more polygons, not retro nostalgia. I also don't believe that teh new PS3 crowd is the same group of people who were on the Sony bandwagon last time around. Most of those customers, IMO, have left sony for Microsoft or Nintendo.