Sony dropping PS2 compatibility chip from PlayStation 3

Sony Corp. is removing a chip from the European version of its new PlayStation 3 (PS3) game console, a move that cuts costs but means users cannot play some of their old games. […] The console will still be equipped with a different chip that processes graphics for PS2 games, but the backward compatibility of the machine will be lessened, the spokesman said.

Reuters (via Taloussanomat VLK)