Sony's next-gen console will use hardware and software to play PlayStation and PlayStation 2 games; SCE president says Xbox "killing itself."
Since Sony announced the PlayStation 3 would play both PlayStation and PlayStation 2 games, many have wondered how the next-generation console's backward compatibility would work. With the PlayStation 2, Sony solved its backward-compatibility issue by equipping the console with the original PlayStation's chipset as a subprocessor.
But when Sony announced the PlayStation 3 specs, the machine didn't include any subprocessor chips, which led industry watchers to conclude that its backwards compatibility would be done through emulation software, as the Nintendo Revolution will.
News source: GameSpot