The first ps3's released had full backwards compatibility with playstation 2 titles via hardware additions. Later on in America they phased out the 20 and 60 gig models and replaced them with the 40 and 80 gig models. The 40 gig model has zero backwards compatibility while the 80 gig model had backwards compatibility via software which only supports about 80-90% of all software titles, the latter ps3 is the one I own. The newest models including the newer 80 and the 160gig have ZERO backwards compatibility with the ps2 software. Sony has done this to cut costs and to encourage consumers to purchase ps2s.