Yes. The Japanese and North American PlayStation 3 is almost entirely compatible with PlayStation 2 and PSOne software thanks to some dedicated hardware built into the system. However, starting with the systems available at launch in Europe and Australasia, Sony has removed the hardware and shifted to software emulation. This means that the compatibility list has been cut down considerably, though future downloadable software updates will increase the number of titles that are supported. Sony has said that it plans on moving all of its future production to software-only solutions in April or May of 2007, including those sold in Japan and North America.