Rumors have been going around that Sony would eventually make a software emulator to support playing PS2 games on the newer PS3 consoles that have no PS2 compatibility. However Sony has now officially said that they have no plans to ever release a software emulator.
All the less reason for me to upgrade from my 80GB PS3 “phat” to the new PS3 slim; that lacks any PS2 compatibility. My PS3 has some PS2 compatibility; but not the perfect compatibility that the launch 60GB models had (due to having all the PS2 chips) so some games have performance issues.
Seems like a missed opportunity for PSN download versions of PS2 games also. [via engadget.com]