Sony has confirmed that the new model PlayStation 3 for Europe has had its backwards compatibility reduced due to costs.
Sony released the final specifications for the Euro PS3 last week, revealing that the machine would only play a 'limited range' of PlayStation 2 titles.
Speaking to GameSpot, Sony Australia MD Michael Ephraim stated that PAL PS3's will not contain the 'emotion engine' chip - the PS2's CPU. Instead, the technology will be emulated.
"Clearly costs is one of the [reasons]. If software is cheaper than the cost of the chip, then why not do that?," said Ephraim.