It would mean encoding individual PS2 games for the PS3, which is something I doubt Sony would devote the resources to because again, the PS2 is still available.
MS has a very clear reason to continue using R&D resources on Xbox BC: they stopped selling the hardware. And yet original Xbox games are still available in stores as of this writing. THAT boggles my mind. I've already bought Xbox games that didn't play on the 360 in the past. I've since stopped looking at Xbox games in stores.
I don't know who claimed dropping the initial SKUs is a way to conceal an overall reduction in production, but I'll flat out say wrong, based upon overall sales increases since November (coincidentally with the release of the 40GB SKU/reduced price). The initial SKUs simply cost more to manufacture and Sony would like to see a return to profitability on hardware units in 2009, based upon their press release regarding future projections.
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