
Speculatively, Max says Sony could be preparing a new PS3 model, similar to the Xbox 360 Arcade, that will strip some features (like the larger HDD) and sell for $199.
The move could make sense for Sony, which is seeing strong momentum in console sales against rivals Microsoft and Nintendo but still sells their console for $100 more than the Arcade model and the Wii. That being said, it is hard to see how Sony could strip anything from the console except for lowering the HDD size, which would not save very much money for the company at all.
Check the pics here via the source (the site has since corrected the "error"):

