Sony says:
Mr. Kutaragi also reaffirmed that the PS3 would feature backwards compatibility with both the original Playstation and PS2 games
Phil Harrison has criticised Microsoft for planning to put two versions of the new Xbox 360 console on the market, claiming the decision will merely "create confusion" for consumers.
"So I think we wouldn't take that strategy. We wouldn't create confusion," he concluded.
Kutaragi gave one example of how the PS3's powerful calculation abilities and broadband network connection could be used for new and original entertainment endeavours. "Users will be able to store their content in an online storage server called the 'Cell Storage'. And the Cell processor, when it's not being used, can refine the content's quality. We call it the 'ageing' process. For example, users can 'age' their Standard Definition (SD) video and up-convert it to High Definition (HD) video
The Playstation 3 will also have a two port GigE router according to the presentation, as well as built-in Wi-Fi 802.11b/g. The PS3 will support up to 7 controllers using its internal Bluetooth controller (compared to Xbox 360's 4 controller support).