Yes, the PS3 can play some PS games such as Final Fantasy VII and The Legend of Dragoon. However, only games that meet requirements of the Technical Requirements Checklist will work well and even then the playability of these games is not guaranteed. Sony has said that later more updates would be released to help backwards compatibility.
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You can not play PlayStation 3 games on a PlayStation 1, but you can play PlayStation 1 games on a PlayStation 3. All of the PlayStation consoles are backwards compatible.
You cannot play Playstation 4 games on a Playstation 4 console. You are also unable to play Playstation 3 games on the Playstation 4.
Playstation 3 can play old Playstation games, but Playstation 2 games are not compatible. You can load some playstation 2 games using the hard drive and an emulator, but not all.
You can't play PlayStation games on the Internet, but if you have a PlayStation 3, you can go on the PlayStation network and play with other people through the Internet.
No as the PlayStation 3 Blu-Ray discs are too large to fit in the DVD slot on the PlayStation 2, although you can play most PlayStation 2 games on American PlayStation 3's and around 50% of PlayStation 2 games on European PlayStation 3's.