Update: We just got word from MTV Multiplayer that makes this news decidedly less cool. Turns out there will be no song exporting; rather, you can pop in your PS2 disc into your PS3 while playing the new-gen version of SingStar and play the songs on that disc. It only works while the disc remains in the console, although disc-swapping works on any PS3, regardless of its current state of backwards-compatibility.

Tearing a page straight out of the Rock Band 2 playbook, Sony announced a new service – to be made available through a firmware update – that will allow folks to essentially rip the tracks from PS2 versions of SingStar onto the PS3. IGN gives us a play-by-play of the service: "Just throw in the PS2 disc and you can grab the tracks!" Epic! We're curious about the details: What's to prevent you from borrowing or renting games? Will this work on all PS2 versions of SingStar? Will this work on all PS3s (even those without PS2 backwards compatibility)? Is this enough to compete with Lips' play-your-own-music functionality? More as we know it.