More evidence that a new PS3 model will be unveiled at E3 has been discovered:

http://n4g.com/news/541256/new-ps3-model-to-be-announced-at-e3

One hopes that this will be the new $199 model.

Also, wouldn't it be killer if Sony were to include a 60 gb harddrive with this model?  It would truely show MS for the money grubbing corporation they are as Microsoft as Microsoft insists on selling their 60 gb harddrives for their 360s for $99 creating a situation where if you want a harddrive add on for your 360, then you end up having to pay just as much for an Arcade model and a 60 GB harddrive as you would if you had just gone ahead and purchased an Elite unit while having only half the harddrive space. 

It's possible.. It's also possible that it's a silent internal remodel that won't get mentioned at all.

its possible since the PS3 Slim's hard drive is user-friendly.

i would be stoked if they have an arcade version of the PS3 but with PS MOVE.

THAT WOULD AWESOME.

Hmm If it included move and retailed for $200 I'd be seriously tempted to buy new one to replace my 40GB PS3.

As for hard drive i don't care i already have upgraded mine to 7200rpm HD.

these are just the 40nm RSX PS3's