According to hot gossip in the manufacturing world, Taiwanese firms Foxconn and Pegatron have inked deals with Sony to produce the PS3 Slim model.
This rumour has some credibility to it given the expectations of Sony announcing a price snip later this year, and clearing out the 'old' 80GB PS3 models at retail. Dun-dun-dun.
Sony Corp has repeatedly denied to address reports of a PS3 Slim. Attached to the swirling rumours also are expectations the PS3 motion 'wand' will launch in spring of next year with a purpose built PS3.
This is similar to the '360 Natal' speculation that took off, and proved to be hogwash. Most likely a bundled PS3 will be released including the new motion controller next year.