No idea if this is old news or what, but I got this info from another website that quoted PSM (Playstation Magazine).
"In the upcoming PSM magazine, there is a feature article about the PS3. They say they received some 'new' information from their development sources who wish to remain anonnymous! No more memory cards, HDD is not for games and more detailed in this article!
1. No More Memory Cards
2. Peripherals Passed Up
3. The Specs Aren't Set
4. The HDD Won't Be For Games
5. The PSP As A Remote
6. There's A TiVo-like Add-on
7. Most games will be 720p
"Sony is leaving the door open for developers to offer players the ability to make their games run faster and smoother by using lower resolutions like 480p(progressive) or 480i(the standard regular TVs use). Sony obviously wouldn't want to abandon the majority of gamers who have non-HDTVs do by forcing all games to run at 720p. It's nice to hear that HD-less folks will get a little speed (can't read) from the lower resolutions, but if you're like us, it's all about resolution, baby."
I got the article from http://www.zgeek.com, the PSP interface caught my eye. I wonder how Sony will make it a semi-controller.
Sorry if this is old news, but I didn't see anything about it when searching for PS3.