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Munkeh111 said:

Would everything fit in? I have seen a picture of the insides of the PS3 and it is full to the brim, and much of that space is taken up by a HDD and the disc drive, things that cannot get smaller

HDD'S Disc drives get smaller all the time. ipods have 80gb drives and they are very thin. dvd drives are small enough to fit in laptops. remember toshiba were going to fit hd-dvd drives in their laptops. a slimline ps3 is more than possible.