What no one has commented on yet is market share. I think this is a smart move by Sony, regardless of games compatibility. It is quite likely that a sizable percentage of those who will purchase the refreshed PS2 are those who otherwise might have purchased a Wii. This is a clever, fiscally smart move by Sony to to compete aggressively in a lower price niche. As part of a long term strategy, this could be a move Sony to move more people into their camp and to keep them there. There must be hundreds of thousands of families, maybe millions who have not moved up to the current generation of consoles due to financial constraints. This could be their entrance.