Playstation 3 do not use CDs for games but can play other CDs
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Yes it will play DVDs besides playing Blue-ray Discs. It will also play CDs.
They use Cd's
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.
Absolutely - it will play all manner of CD's, DVD's, BD's, MP3's, MP4's, and other movie files that are either transferred or downloaded.
No not unless it is a special offer the PS2 does not include games when sold for the $99.99 price in the USA and the Games are not CDs they are DVDs