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From kotaku.com:

I've tried three or four games on the system and all have worked fine, including SingStar using the USB microphones.

Gameplay seems pretty much unchanged. Though you're now using the PS3, rumbleless controller, to play the games. The console does give you the option of selecting digital or analog mode for the controller, which is nice. But that can't make up for how relatively cruddy the games look after playing PS3 games for the day, but that's not too surprising.

Read More: kotaku.com