As Alexis said in the comment, it moves the cursor back (to the left by one character). Then when you print, it overwrites the character (applying only to the current line of text)
>>> print 'abc\b'
abc
>>> print 'abc\b\b\b'
abc
>>> print 'abc\b1'
ab1
>>> print 'abc\b\b\b123'
123
Nothing Python specific, as evidenced by "backspace character weirdness"