[RobRich]

Industry insiders think the Sony PlayStation 3 could receive a significant design update this fall in addition to the previously reported hard drive update. The console is expected to shrink in both size and weight.

Quote:

We wouldn't be at all shocked if the much-touted 160GB PS3 is in fact this slimmed down puppy.

Sony has peddled their usual line of 'not commenting on rumours and speculation', but that is exactly what they said before they dropped the size zero edition of the PSP.

Source: T3

Whatever Sony does with the enclosure design (if anything), sources close to GameStop claims the next PS3 update will feature a 120GB or greater hard drive, packaged along with a Dual Shock 3 controller.

Quote:

While the rumor that the 80GB system was being phased out of production appeared to be confirmed by its apparent disappearance from the Best Buy website, other retailers still listed the system in stock. However, the rumor persists, particularly from multiple sources that contacted IGN to inform us that a Gamestop conference call confirmed that the system is no longer being made.

Source: IGN