I can tell you that it will have PS2 and PS1 backward compatibility.by that time lots of PS2 classics will be available on PSN and PS2 is most likely discountinued by then.

So who's with me on this?

oh and it will be out in 2 years(revealed in 2010)

PS3 can't do PS2 and you expect a handheld to emulate that?

unless there is a way to include the PS2 hardware in the handheld then there won't be any reliable emulation.

no hardware needed, its all software.
there are tons of PS2 emulators online.

right that explains why there isn't one for the ps3.

Severely doubt that. PSX possibly, PS2 no way.

um... my ps3 does it quite fine...not sure what ur getting at?

yea the PS3s with PS2 hardware in them can run it just fine but once Sony took out the hardware they couldn't emulate it.  I don't know if there is a way to shrink it down small enough to fit into a handheld but it would be sweet to play PSP games on PSP.