It plays the newer Blue Ray disks and improved the problem of pixelated ,or poor graphics. Also solved problems with incapatibility.
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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.
PlayStation x PlayStation 1 PlayStation 2 PlayStation 2 slim PlayStation 3 PlayStation 3 slim Coming soon - PlayStation 4
No the PS3 is designed to be connected to a television. It will play on any form of television it can be connected to to from 480i to 1080P
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.