Source: Gamesutra
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Sony has released the latest 1.70 firmware for its PlayStation 3 console, laying the groundwork for playing downloadable PS1 titles on the console itself, and improving backward compatibility with PS2 peripherals.
Long announced and in development, the latest firmware update has finally promised to give players the chance to play the PlayStation Network's selection of downloadable PS1 titles on the PlayStation 3 itself, as opposed to just on the PSP.
However, for now, it appears PS1 downloads will have to be specially enabled by Sony to work on the PlayStation 3. This means users will have to re-download PS1 games bought before this latest update, and the downloads have not yet been updated. Japanese reports indicate that this will happen, at least in that territory, on April 26th.