It may also be another PSX, this time marketed towards technophiles instead of gamers.
They tried this before with the PS2 version of the PSX, which sold miserably, but I think it was more due to the fact that the market was not prepared for something along those lines just yet back then.
Today, with broadband, wireless and HDTV penetration continuing its relentless growth, plus Sony's hedge on Blu-Ray, it might make sense to attempt this approach again. Even back then my wife would've had a fit seeing network cables dangling around the house (now we have wireless); back then streaming was out of the question, as broadband was just being introduced (everyone still on dial-up), and your TV wasn't up to the task of displaying HD. Finally, the entire concept of a networked, streaming multimedia home was simply too far out of left field to become a market reality. The concept was in its infancy.
Fast forward to today: The PSn (insert your number) is a gaming machine with multimedia capabilities, but the PSX is a multimedia hub with gaming capabilities. I can see people buying that, and I can see my wife accepting a machine that serves as a multimedia hub more than if it were the other way around; it's also far easier to justify spending 600 bucks on something that everyone can enjoy as opposed to something only gamers can enjoy.
Timing is important: You can have the greatest product in the world, and you can have it sold at an affordable price, but if you are too early to market, the product won't fly with consumers, and you have a stinker. Perhaps now is the right time to reintroduce the PSX idea?
Plus, wasn't the PSX Sony's attempt to gain a foothold into everyman's living room? I don't see them giving this up anytime soon, as if Japanese corporate culture has taught me anything, their idea of a short-term strategy is not a quarter, but more like 25 years.
Edit: A PSX based on the PS3 does not need to be a complete redesign; most of the product could simply be repackaged in a more AV-friendly housing similar to a receiver. They may already have the PSX product design readied during the PS3's development.
