As great of news as this is, it should be noted that the manufacturer states that playback of PS2 ISO's on consoles lacking hardware backwards compatibility, must rely on the built-in software emulator. They go on to state that the the built in software emulator is rather buggy and sometimes slow, so it should only be considered a gimmick for the time being. However, if your system does have hardware backwards compatibility, you can expect the same great playback as if you were running the PS2 game from a disc.
Furthermore, the new update brings a host of new bugfixes and improvements. One such improvement is the ability to run PS3, PSX, DVD and BluRay ISO’s without needing an authentic disc inside the system. The manufacturer goes on to state that this functionality will arrive for PS2 ISO's in a future update.
We have released Cobra Firmware v2.0 and Cobra USB Manager v2.0, which are both available from the downloads page. Changes in this release include:
Added the ability to play PS2 ISO backups from CECHC and CECHE backwards compatible consoles. Support for the remaining backwards compatible models, CECHA and CECHB, will come in a future update
PS3, PSX, DVD and BluRay ISO’s can now be played without a real disc inserted in the PS3. Support for discless PS2 backups will come in a future update
Added an option for those users without a PS2 backwards compatible PS3 (including Slims) to test PS2 original games and ISO backups using the PS2 software only emulator which is by default included with all PS3′s. Please note however that as the software only emulator is slow and very buggy, this feature is disabled by default and is only intended as a gimmick
Cobra USB manager can now make PS3 ISO’s from backups in the standard “Jailbreak” directory format, using the copy function
Cobra USB manager is now less strict with cue/bin filenames
Bugfix: Cobra USB Manager was unable to get the PSX CD-ROM/CD-R title, and displayed “PSX-CDROM” instead
Bugfix: Under rare circumstances, Cobra USB Manager could dump invalid PS3 discs