backward compatibility, ps3's japanese downfall

[SilentWolf]

Kyros said:

It has more to do with the fact that companies don't like it when people sell their PS2 for a PS3 when the PS2 is still in production.

Sounds weird why would they rather sell someone a PS2 for 110$ than a PS3 for 400$?
They needed to cut the price bad and the PS2 chips may be cheap but they are not forgettable. I would think that they were the most expensive part of the PS3 after GPU and CPU and a logical candidate for saving some money.

I think it means that they want the consumer to buy both.  If say the 40GB had BC, there would be no reason for the consumer to spend an extra $110.