A few days ago Sony's Ken Kutaragi's
TGS 06 keynote speech revealed that the PS3 would be backwards compatible with 16 bit games on the MegaDrive/Genesis, much like the Nintendo Wii. Oddly enough SEGA Japan has issued a short statement clarifying that such claims are not correct at this point, that the option is merely being considered, and is currently "under examination." Did somebody speak too soon?