Sony has confirmed that the PlayStation 3, its next generation console does not run about 200 PlayStation and PlayStation 2 software titles properly.

Titles including Gran Turismo and Final Fantasy sold for the PlayStation and PlayStation 2 are not able to display menus properly and graphics sometimes freeze, Sony said.
Sony also said audio features do not work on some software titles when played on the PS3, which is supposed to be compatible with games designed for its previous models, while some other titles do not work on the latest machine at all.

However Sony has been quick to say that it will be launching a firmware update to fix the problem.

"There are always sorts of little problems at launch ... It may take some time to make everything compatible, but I don't think it's a huge problem", KBC Securities analyst Hiroshi Kamide told Reuters.

However the issues didn't stop the console selling out in its first weekend on sale in Japan.

The console is already appearing on Ebay with the prices for the 60GB model reaching over £1000.

A number of listings are for units to be shipped from Hong Kong, Singapore, and Japan, with some sellers promising to refund any VAT that may be slapped on when it enters UK shores.

According to Gamesindustry.biz, Enterbrain, publisher of Famitsu, has revealed the the tie-in ratio of software to PlayStation 3 sales is 0.98 – less than one game per console, suggesting a strong "portion of the 88,400 units sold were bought with the intention of selling on as part of the 'grey market'".

Keep an eye out on Pocket-lint for a full review of the PS3 sometime this week.