From arstechnica.com:
[QUOTE]
With E3 only a few days away, the rumors and speculation have begun to filter around the Internet; all eyes will be on Los Angeles to see what Sony, Nintendo, and Microsoft have up their respective sleeves. Luckily, we don't have to guess, as we have the support of our very well-informed mole. His information? Not only is the PSP Go real, but we'll be seeing a slimmed-down PS3 in August or September. However, this news likely won't be announced during E3.

Allow us to explain. There are plenty of PS3 systems sitting on store shelves right now, and Sony is planning on sitting back and allowing the supply of those units to dry up over the summer. We shouldn't expect a price cut, but the possibility is certainly there. After retailers are ready for new stock, Sony will begin releasing the slimmer units to retail, although what features have been taken away or added is still anyone's guess.

This isn't breaking news, as Engadget came into possession of supposedly leaked pictures of a smaller PS3 a few weeks ago; the story ran around the tech press quickly. The existence of a smaller PS3 seemed rather unlikely, until the sites that ran the picture received a cease and desist letter from a Chinese company saying that pictures contained "confidential information."
[/QUOTE]

Full Story: arstechnica.com

From 8bitjoystick.com:
[QUOTE]
I only have a few good theories and hunches about what will be announced by Sony:

* PlayStation Portable Go!
* PS3 Hardware and Price Cuts
* Cross game voice chatting on PS3 games and better cross game invites. I think Sony is going to embrace the PlayStation Network and look at redesigning the PS3 user experience via software changes like Microsoft was able to do with NXE.
* Little Big Planet PSP shown off.
* Sony publishes and translates Sega's Ryu Ga Gotoku 3 as "Yakuza: Gangster's Paradise" (I made up that name) with subtitles. It would be a GTA-like PS3 exclusive. Ryu Ga Gotoku 3 was a HUGE hit in Japan.
* MAG is going to blow people away.
* God of War 3 talked about but not shown.
* Sony announces a new SDK API set to port PS2 and PSOne games to PS3 for compilations and collections. It would help recompile and retarget code developer for the PS2 chipset to the PS3 Cell/Nvidia chipset. But GDC or Tokyo Game show might be a better place to announce this. How cool would it be if Square could release all the Final Fantasy games 1-XII on a single Blu-Ray disc?
* Patapon for PS3 announced.
* Hulu.com player application for PS3.
* Netflix Streaming for PS3.
[/QUOTE]

Full Story: 8bitjoystick.com