As we reported on Friday, The version of the PS3 that will ship to PAL territories has lost some PS2 hardware, which will drastically reduce the amount of PS2 titles compatible with the PS3. However, in an unofficial blog, Sony has said that this reduction in backwards-compatibility isn't all a bad thing. They removed the PS2 processor that is found in the American/Japanese PS3 only to meet the strict PAL standards, and the models that are PAL-compatible will have a PAL sticker on the front. Sony will also work hard to update firmware to allow more and more backwards-compatibility with PS2 games. On March 23rd, Sony will maintain a site with a nice long list of compatible PS2 games. You can visit this site when it goes online here.