The 60Gigs version plays it all (PS1, PS2 & PS3 games) because it has the actual hardware built-in to play all the 3 systems, but good luck finding a new one because they don't make them anymore. I personally would probably go with an 80Gigs version, but it uses software emulation to run the previous platforms so it might be glitchy in some games or not run specific games at all. I'm pretty sure Sony releases patches though so the capability to play PS1/PS2 games on the 80Gig is more compatible and reliable. I'm pretty sure the most popular games work and that's what most people have anyways. I have a PS2 Slim so I can personnally careless about backwards compatibiliy. Heck I don't even play my PS1 games anymore, I'm sure once I get a PS3, I'll eventually feel the same for the PS2 games.