That's what they told me at the store, but when I got it home...fail. So, in the year that I've owned a PS3, I've spent maybe 10-12 hours playing it.
I have not recovered.
I just found on wiki exactly what happened.. basically Sony took out the ps2 chip on later (cheaper) models of the ps3
I have one of the first ones that came out, thus I can play all my ps2 games on the ps3
it's kind of funny because that's one of the key reasons I bought the ps3 over xbox 360 at the time ( I have both now) also the fact that the ps3 included a free blu-ray player and xbox had a $200 upgrade to the now defunct HD-DVD format.
"support for PlayStation 2 backwards compatibility has continually diminished with later models.[99] Compatibility issues with games for both systems are detailed in a public database hosted by the manufacturer.[100] All models, excluding the 20GB model, include 802.11 b/g Wi-Fi. In addition to all of the features of the 20 GB model, the 60 GB model has internal IEEE 802.11 b/g Wi-Fi, multiple flash card readers (SD/MultiMedia Card, CompactFlash Type I/Type II, Microdrive,[101] Memory Stick/PRO/Duo), and a chrome colored trim.[102] In terms of hardware, the 80 GB model released in South Korea is identical to the 60 GB model released in the PAL regions, except for the difference in hard drive size.[103]
Like the South Korean and European models, the North American 80 GB (2007) model also excludes the PlayStation 2 "Emotion Engine" CPU chip.[99] However, it still keeps the "Graphics Synthesizer" GPU.[104] Due to the elimination of the "Emotion Engine", the level of compatibility was reduced.[99] The 40 GB, 80 GB (2008), and 160 GB models have two USB ports instead of the four USB ports on other models, and do not include multiple flash card readers, SACD support,[105] or any backwards compatibility with PlayStation 2 games.[17][99] This was due to the removal of "Graphics Synthesizer" GPU, which stripped the units of all PlayStation 2 based hardware.[106][107]"