Now whether or not these pictures are real, it's certainly possible that Sony could make a slimmer PS3.  The internals of the PS3 have shrunk considerably since it was launched in 2006, yet the console largely remains the same size.  Sony has shrunk the PS3's motherboard 20-30% with the removal of backwards compatibility.  The flash card readers have been removed.  Technology has improved – just check out the size of the PS3's current Blu Ray drive compared to the ones Sony is churning out now.  Obviously there is some room to slim down the current PS3.

From Sony's perspective, a smaller PS3 would free up shelf space in retail, reduce transport and shipping costs, and also reinvigorate consumer interest in the product.  During their earnings breifings held in Tokyo last week, Sony CFO Nobuyuki Oneda also hinted at a possible redesign, telling investors that they had 'several cost cutting procedures' lined up for the PS3.

So, PS3 Slim: is it fact, or is it fiction?  With E3 coming up in less than a month, it's anyones guess as to what Sony is up to, though with the PSP Go! essentially confirmed to be revealed at the trade show, it's doubtful they would also reveal a new PS3 model as well.  What makes this even more evident is that Sony has yet to submit any new PS3 designs to the FCC, which has been a dead give away for all the previous models in the past.  Expect Sony to axe the price of the PS3 at E3, with the 80GB model dropping to $299 and the 160GB model to $399.  Then, once the excess PS3s have been cleared out, Sony will drop the slimline PS3 this holiday season for $299.

*PS3 Slim concept art by NeoGAF member Goldrusher.