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If removing the chip reduces the price of the PS3 for consumers, that's a good thing. Emulating more chips in software will likely reduce compatibility until they can reproduce each chip's functionality cycle-perfect, but along the way the potential exists for higher rendered and output resolutions, as well as applying filters to the graphics output beyond simple bilinear filtering. It's only a first step, but definitely good news for those of us who are waiting until the PS3 comes down to something closer to $200.