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Ah thanks. Still not knowing the source of the rumor, I see the point of the somethings gotta go mentality to drop the price, but dropping the BC just doesn't make sense to me.

1. I had assumed they had moved all regions of the PS3 to software emulation which means that there wouldn't be a need to drop any hardware.

2. BC compatibility is one of the things that Sony loves to boast about so it doesn't make sense they would drop it.

3. If they really wanted to cut cost and make you think you're buying something that's cheaper they would do what MS does with the 360 and take out the Wifi adapter and make you buy one. I would believe that much easier than them taking out BC.

As for the implications, I actually don't think it would do much. A good deal of people don't even know the PS3 is backwards compatible and you would only hear a stink from the people that regularly check sites like this or Kotaku or whatever which isn't the majority.