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dallas said:

How would this save sony any $$$$$?


Technically it's not about lowering cost at this point.  Producing the emulation software AND producing the hardware emulation was the most costly setup Sony could have.

Since it's no longer producing the hardware emulation, now all that's left is to compare the all the devleopmental cost of the software emulation (which by all accounts has yet to really be "finished") versus the cost that it would have taken to continue the hardware emulation. 

After the software emulation is complete (works for everything), it will just be a matter of spreading the development cost over every unit sold until its no longer a number worth looking at.