Does this mean it won't even recognize PS1 and PS2 discs, or does this just mean the PS2 processors were taken out, like the 80GB version?

That basically just repeats all the rumours and adds the "no ethernet cable" item (funny to say the least :D).

How can we know if it's true?

Check out KruzeS's post at this thread:

http://vgchartz.com/forum/thread.php?id=7921

PS1 games should work. If they don't work, it's definitely a rip-off, because PS1 emulation is software only.

Soriku you seriously need to fix your sig, its way to long. Try to not do double spaces and do single spaces that helps.

On Topic: That is bull. I'm not getting the PS3 40GB now. I will wait till they bring the 60GB or 80GB down in price. Thats just a rip-off. MaryJane wouldn't like it either. Its nothing but a plain console. Unlike the 360 Elite, it comes with a 120GB HDD, new heatsink, HDMI cable, ethernet cable, wireless controller, Component cables, and a headset and the best online interface Xbox Live. Now that is worth $400, or should I say $450.

Sony needs to seriously rethink their strategy cause its horrible. I hope its a rumor and are these SKU's going to have the new Dual Shock 3 controller or do you have to buy it seperate?

This is all still hearsay.

A Sony Style employee is about as clueless as a Walmart employee. We won't know for sure until Sony announce the damn thing in the coming days.

I'd certainly hate to lose BC though ...

This would be really sad. Although I doubt it will actually happen, anything is possible at this point. I love Sony. I worked for them, I enjoy their products but I can't help but feel like we're never going to catch up in this race. I really don't care about "winning", I care about seeing quality games being developed for the PS3.

If this is what that extra $3 billion is going towards... That is sad. They should have said "Hey Rockstar, here is more money than you could ever refuse for GTA4 exclusivity. That is something that could turn the system around. Microsoft did it right this time around. They spent tons of money buying exclusives and now they're reaping the benefits. Sony has little time to catch up with that game.

@Crucial

You got that right. Microsoft money talks!

Its impossible to lose backwards compatibility since ps1 games come from the ps store.

No EE chip= same as 80gig backwards which is 85% of all ps1/ps2 games.

Who needs ethernet..it has WI FI :D

The only problem is the ps2/ps1 backwards. But I seriously doubt they would take the whole thing out.

I think they will go from the 20k units its doing now to 40k or 50k and stay stable like that.

For making the console $400. You know Sony had to reduce some stuff in it. And I think the backwards comp. to PS2/PS1 games is taken out of this new SKU.