[jjmoohead]

Sorry for the double post, I just read this....

Sony's head of Worldwide Studios, Phil Harrison, has confirmed that European PS3s will be able to play up to 1,200 PSone and PS2 games from day one, despite changes to the way the console handles backward-compatibility

From what I understand thats about 1000 PS2 games and 200 PSone.
Since this is what the orginal post was about, thought i should mention it. Now although this isnt the 98% of the games that work on North America's backwards capabilities, this is still a rather large selection of total games that can be used despite using software rather then a chip to play the games. It was also stated that through updates this number will grow. This also means that since sony is actually leading to the removal of the chip on future PS3 system releases throughout the world that It will mean a significant reduction in the costs of the machines to be produced. The chip is not the same chip as the PS2 and instead was created exclusively for development in the PS3. No longer needing the chip could mean reduction in prices for the consumer. Hardly seems like a reason not to buy a PS3 in my mind. I think back to the launch here in north america and they said how 1000's of games wouldnt work. Well a few short months later they are at 98% compatibility and with the PS2 to PS3 controller converter launching shortly, that percent will rise again. This is just a temporary set back in backwards compatibility, I realisitcally think these 1200 titles will increase drastically over the next few months, just like it did for the north american launch.

EDIT: Also stated the the of the 1000 PS2 games, it was noted that Sony policy is to focus on popular titles. It reads "Though the specific titles that comprise the list have yet to be announced (Harrison notes that Sony's policy is to focus on popular titles), it seems Sony is already far better equipped than Microsoft when it comes to fighting the inevitable onslaught of gamers complaining about their favorite title not being supported."

SECOND EDIT: Sorry I really should have kept reading before posting. Another website is stating that all PS1 games will work at launch. I have seen no report from sony to make this offical. www.itwire.com says "Interestingly, original Playstation (PS1) games are all expected to work on the PS3". If the 1000 games that are expected to work is accurate that is about 40% compatiability for european launch. With that number to increase.