The ambiguity you are reading is true, and very simple. The original PS3 (60Gb like mine) are backward compatible. But the new 40Gb consoles are basically trimmed down version of 60Gb to make them more affordable, and hence some things missing - like backwards compatibility with PS2 games. Also only having 2 USB slots compared to the 60Gb's 4. There are also some more differences but can't think right now which. HTH m8.