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@WhiteDevil: Is that sarcasm? I don't recall MS owning Bioshock rights, maybe a timed exclusive contract but Take2 owns the IP.

Anyways, This topic IS overkilled, but the rumors keep surfacing over and over again. CVG says PSM3 (UK mag) claims to have a lengthy Bioshock PS3 preview with screenshots in their upcomming issue.
http://www.computerandvideogames.com/article.php?id=189519