We're a little stumped by this one, but it looks like both the 20 gig and the 60 gig PlayStation 3s are being discontinued in Japan; the 40-gig model will be the only one available in the inscrutable island nation. That means no more backward compatibility for PS2 games in Japan.
We'd understand getting rid of the smaller HD models in favor of the beefier 60 gig model, but getting rid of the bigger-drived model is a little odd...
Whether this is a harbinger of Sony's plan for the PlayStation 3 in the rest of the world remains to be seen.
Engadget.com: 20GB and 60GB PS3 discontinued in Japan -- PS2 backward compatibility ends
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