Source: ps3blog.net
Rumors are surfacing of a forthcoming slim PS3.

Sony always size/cost reduces their hardware, so a slim PS3 is obviously coming, it’s simply a question of when.
the next iteration of PS3 packages has been all but confirmed during a GameStop conference call recently.
So, the safe bets for hardware revisions:
- Bigger Hard Disk
- DualShock 3 controller with both sixaxis funtionality and rumble
- Newer cheaper, cooler, quieter, and more reliable parts
- Smaller Form Factor
The big questions are:
- When will these improvements hit?
- Will we see original PS3 features restored such as PS2 backward compatibility, 4 USB ports, integrated flash card reader, and SACD support?
- Will we get extras such as DVR features, optical disc writing, and expanded RAM for improved Linux home PC support?


