Sony announced today, that their existing Play Station 3 models will have a $100. price cut, to $299. for the 80-GB and $399. for the 160-GB. Also, next month, they will introduce PS3-Slim, with a 120-GB HDD, for $299.

The question is, will the PS3-Slim have all the features of the other models, most particulary Blu-Ray capability?
PS3 price cut by $100; slimmer model to come - MSN Entertainment News (http://entertainment.msn.com/news/article.aspx?news=426826&affid=100055)

Here's the Sony site press release.... looks very nice... still has Blu-ray

PlayStation Games & Media News: - Entertainment on PS3 has a new look (http://uk.playstation.com/games-media/news/articles/detail/item229653/Entertainment-on-PS3-has-a-new-look/)

No backwards compatibility with the PS2 or the PS1, therefore I will not buy it.

And due to the AACS Final Adopter paper, the PS3 Slim will most likely lose it's AV Multi Out and be a HDMI only machine in the very near future.

The Backwards Compatibility was scrapped quite a while ago even on the current PS3 SKUs. ONLY people with the 20GB 90nm or 60GB 90nm PS3 can play PS2 and PS1 games now. I'm one of the lucky ones that got a 90nm model.