i actually just heard of this last week. this rumour seem to have been around since May. there were (really dodgy) pictures of it floating around on the net. now they say that maybe all this will be official on August 18 at GamesCon. well i hope the rumour is true.
it does seem what sony would do anyway. playstations always have a slimmed down version. the Playstation became PSOne.. Playstation2 became Playstation2 Slim and even the PSP have a slimmed down model the PSP Slim. so why not PS3 Slim? its just a matter of time isnt it?
neway.. read more of it here (Yahoo!Tech) or here (Gamespot.com)