killeriii, I don't think you understood my posts. Initially Sony didn't drop the price on PS3 because they were losing $ on each one sold. Each PS3 cost them between $800-900 to make. They later dropped PS2 BC entirely, first hardware based, then software, which reduced the cost of manufacturing the PS3, including the Slim. This is a fact that it costs money to implement BC: http://www.tomsguide.com/us/Sony-OnLive-Gaikai-PlayStation-Streaming,news-15427.html To ensure BC with the Cell, it would mean either including physical hardware of the Cell or spending millions of dollars on trying to emulate it in software. Either of these options would drive the cost of PS4 (especially the 1st option). The outcome would be either higher costs to Sony, or they would pass on those costs to us via higher price for PS4. Since Sony is losing $ hand over fist, it's likely they would pass on the costs on to us. But based on how well PS3 Slim and all other PS3's without BC sold, it's clear consumers prefer lower price over BC and higher price. Secondly, you say Sony is dumb to have switched to x86 CPU design but it was the Cell that was a terrible mistake - it was costly, hard to program for and terribly underpowered without years and years of optimizations. By going with an x86 CPU, Sony will achieve all 3 things at once: 1) Cheaper CPU (AMD's APUs cost $100-125 in retail, which means Sony can get it way less directly) 2) Faster CPU (while AMD's CPUs can't hold a candle to Intel, they are still far superior to IBM's PowerPC or Cell architectures for games) 3) Ability to easily port x86 PC games to the console and ease the life of programmers/developers by using common PC components. The main question mark is will there be a separate dedicated GPU along that APU, and if yes, what is it? The decision to move away from the Cell to x86 is a good one even if it means losing BC. If you still want to play PS1/2/3 games, why would you be buying a $400+ PS4 in the first place? BC has become this entitlement that wasn't there. NES --> SNES --> N64 for example. If PS4 doesn't have BC, what's the option? Going with an Xbox or Wii U and getting no PS1,2,3 BC anyway. That's why BC is not a big deal. If PS4 doesn't have it, people will still buy PS4. If PS4 has it, it means millions of dollars (I.e., losses to Sony) or higher price for us consumers.