Still plays ps2 games as far as I know, and the memory is the only thing that has been stripped down.
Saying that though, I haven't gone back to any of my ps2 games anyway, so shouldn't really be a problem...
For 20 quid from the Playstation Store, it is a BARGAIN. Not too sure you need the bluetooth headset that comes with the shop bought package - all I can make out is the occasional mumble.
But, its intense, there's no slowdown at all, even with 32 planes shooting the shit out of each other, and...