Sony's patented an Emotion Engine emulation system for PS3's Cell processor.
Meaning? That PS3 could play PS2 games without any hardware changes, in theory.
Get details and diagrams from SiliconEra.
What? PS3 price cut, Firmware 3.0, PS3Slim and PS2 emulation all before the end of the year? What's that?
Thanks Robo_1 and Blerk.