A report by Bloomberg has it that Sony's Japan unit is fessing up to problems with the PlayStation 3's backwards compatibility for certain PlayStation 2 titles, such as Gran Tourismo and Final Fantasy. Apparently menus don't show correctly and games are freezing. Fortunately, however, a software fix is also supposedly in the works to squish these heinous bugs. We haven't ourselves extensively tested the backwards compatibility yet, but we'll be sure to try and dig up some choice titles when we dig in; anyone with a gray market PS3 or Japanese console in the house that can attest?

[Thanks, azesino]

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PS3 not playing hit PS2 titles; fix on the way