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Hiku said:

So they were just intentionally keeping this feature locked away?
Pretty weird that they allow PS4 games to be played, but not PS1 and PS2 games.

It's done using an emulator. If you look carefully, you'll notice it's using PS5SX2, which seems to be a PS5 port of the ages-old PCSX2 emulator. I wouldn't bet my money on Sony itself utilizing PCSX2 anywhere, but I could definitely be mistaken.

konnichiwa said:

Ps3 also if I had to believe my social media.

If I recall correctly, during the last years of PS3, there were reports that Sony had got software-based emulation of PS2 games working on PS3. If that's true, it would mean Sony just never bothered to release the support. Come PS4, they ditched all backwards compatibility, except for some Store releases, I guess.