A slightly egotistical quote from Kaz Hirai:
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when it came to the fourth part of Sony's digital future vision, PlayStation, the Sony keynote address disappointed. Stringer, a masterful presenter, ceded the floor to Kaz Hirai, the similarly smooth president and CEO of Sony Computer Entertainment America, who talked about...the PlayStation 2. Hirai said the console actually saw a 10 percent year-on-year increase in holiday sales, contradicting many analysts' predictions. He also elicited chuckles by pointing out that both the PS2 and the PSP outsold the hard-to-find Xbox 360 over the holidays. He also took a verbal swipe at Sony's next-gen rival, saying, "The next generation doesn't start until we say it does."

When the subject did turn to the PlayStation 3, Hirai offered no major new information. He did say that the console is a "key pillar of Sony growth in 2006"--reconfirming its release this year--and said Sony has shipped out 4,000 software development kits for the console worldwide. Otherwise, though, Hirai merely restated previously known information about the PS3. He said its CPU, the vaunted Cell processor, would use only seven of its eight cores, and, yes, the console would be backward-compatible with both PS2 and original PlayStation games.
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heh well at least we know that the PS3 will be backwards compatible with both the PS2 and drumroll.....PSone lol