So the PS3 isn't region free as far as backwards compatibility goes, it seems.
In the context of an article about Sony prosecuting companies illegally importing Sony products into the European Union, the following tidbit slipped out:
The company explained the reasoning behind this policy as trying to "protect" European consumers "from being sold hardware that does not conform to strict EU or UK consumer safety standards (due to voltage supply differences etc.), is not (in PS3's case) backwards compatible with either PS1 or PS2 software, will not play European Blu-ray movies or DVDs, and will not be covered by warranty."Well, that just sucks. So here I am with my plans for importing all those PS1 RPGs that never made it to Australia scuttled. It seems kind of... stupid. Looks like the mod chip market won't be dieing out after all.
- via Gamespot (emphasis added)
Or, y'know, we can just keep hoping that this statement came from a marketing guy with no idea what he's talking about.