Sometime in 2009...most of the components have been shrunk down already...Sony is getting ready to release the slim line blu-ray drive, the cell was shrunk from 90nm to 65 and soon to be 45...They've removed a lot of stuff like the emotion engine, etc.
Yes, all those are "small" decreases, but it all adds up...I think we could definitely see a slim ps3 in late 2009.
PSN ID: Sorrow880
Gamertag: Sorrow80
Wii #: 8132 1076 3416 7450