Uberkiffer on 01 February 2011
I could be mistaken here, but considering how most all PS3 games require some amount of install, I highly doubt that 4GB or 8GB would be enough to satisfy customers w/out forcing them to pick up an extra HDD. That sounds like a public relations nightmare etc. MS can pull it off because of the architecture. Bluray discs are much larger and as such developers cut down on in game loads by having the installs... messing with load times and such probably isn't a wise idea.
Additionally, having an "arcade" style unit goes against everything Sony has attempted to structure itself as this generation; a premium home console that can do everything. Is a $200 PS3 possible? For sure, but the sacrifices would have to come from somewhere else.
