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Maybe someone should back Nj5 up, and that would be me. The current PS3 have the GC and software emulation. The GC is hard to emulated (as already laid out here). The rumor is (and I believe it) that the new PS3 has no GC and therefor NO BC. It is hard to believe for me that Sony had cracked a emulation of the GC, not impossible but hard to believe. The GC and the ram needed for it, should be adding about 40-50$ production cost to the current PS3's. So there is a point in removing it. And I personally think it is the right move, getting the PS3 to 399$/€ with no BC and having one with 499$/€ with BC. The main problem of the PS3 is the price, and i think some of you overestimating the importance of the BC. The 360 has nearly none and does it hurt? Doesn't seem so. There are some people that want BC but I think the majority don't give a grap, since they don't sell there PS2 and get a PS3. With 399€ Sony reached a good price point for this Christmas, and that is far better than having the console at 449$€ with BC.