While we're not going to complain about the launch of the cheaper 40GB PS3, we are still kind of miffed that it isn't backwards-compatible with our huge library of PS2 games -- especially since newer PS3s retain compatibility through software emulation and not specialized hardware like earlier models. Not to worry though, because Sony Computer Entertainment America CEO Jack "Daniels" Tretton is here to dazzle you with mathematics: according to Jackie, the consumer actually benefits from Sony's move to cut emulation, because now you have the opportunity to buy both a $399 PS3 and a $129 PS2, for a grand total of $528, which is -- wait for it -- less than the original 60GB PS3's price of $600! Of course, what Mr. T here is forgetting is that most people would prefer a single, $399 PS3 with backwards compatibility (and rumble, for good measure), but really, once you get spinning that fast it's awfully hard to stop.

[Via Joystiq]