Originally Posted by ShatteredFlame
I may be wrong but I think all PS3s have PSOne backwards compatibility. I have the slim 600GB purchased in 2010 and it can play PSOne games but not PS2 games.
As far as I know, this is true. Sony made a boo-boo with the PS3's architecture, they basically put a ps1, ps2 AND ps3 together in the console, so the first wave was essentially 3 consoles in one. This drove the price up, and as such they had to cut the ps2 in order to fix the obscene cost price.
The ps2 capabilities it has now, for downloadable titles, is actually a digital emulator, and you're essentially downloading roms when you buy the games digitally. It a bit of a mess, but this generation has been all over the place for such things!