An Ars Technica "mole" reports that the 80GB PS3 is indeed out and will be replaced by a 120- or 160GB PS3 with a DualShock 3 controller at the same price point ($499). Beyond the extra gigglebytes and the rumbling controller, the "mole" had nothing else to add; questions regarding backwards compatibility, USB ports and other such incidentals will have to wait for another day.
CVG spoke with Sony Europe which dismissed the story as "rumour and speculation." Sony America gave us a similar response, minus the British "u." A Sony America spokesperson said, "As you know, we don't comment on rumor or speculation." For those keeping track, the emergence of a new PS3 model would be the
Read: Mole: 80GB PS3 dead, 120-160GB with Dual Shock 3 incoming
Read: Sony Europe responds
[Via PS3 Fanboy]