UPDATE Sony's head of UK PR David Wilson has given CVG the following statement:
"PS one title backward compatibility has not changed and there will be a limited number of PS2 titles compatible - but PS3 is defined by key features such as the CELL broadband engine, its Blu-ray drive, the SIXAXIS Controller and its ability to output full 1080P HD game content which makes it an entertainment system for the future, without equal. Backwards compatibility is important but it does not define the PS3 in the same way as the other features do.
"We have been assessing the extent of backward compatibility, and will continue to do so right up until launch. It is therefore not possible to provide a specific number of backwards compatible titles at this stage. Users will be able to check whether their titles are compatible with PS3 by checking the list of compatible titles at http://faq.eu.playstation.com/bc. This site will be available on March 23 to meet launch day.
"PS one titles remain backwards compatible and we will continue to assess the compatibility of PS2 titles right up until launch. We will continue to offer firmware upgrades to increase the number of titles that are compatible, but rather than concentrate on PS2 backwards compatibility, in the future, company resources will be increasingly focused on developing new games and entertainment features exclusively for PS3, truly taking advantage of this exciting technology.
"Whilst in the longer term these production related cost reductions will enable us to reduce the cost of PS3 to consumers (in the same way we have done with PS2 over its 6 year lifetime to date) SCE has no immediate plans for any price reduction on the platform.
"We will continue to assess the compatibility of existing and new PS2 titles, both first and third party."