Ars Technica's seemingly reliable inside source has snuck out of the shadows with another interesting bit of hardware "news". We know that the 80GB PS3 is being discontinued, even if Sony won't admit to it themselves. The rumour is that another SKU (for those of you playing at home, that's the fifth since launch) will take the place of the 80GB, and will come bundled with a Dual Shock 3 controllers. Prices will stay the same, but the new SKU will have a 120-160GB hard drive.

The article doesn't indicate whether the new SKU will have backwards compatibility, memory card readers, more than two USB ports or, you know, whether it even really exists. We're not convinced that this is the best idea - the 40GB has been the only SKU available in Europe for a wee while now and it's doing great. Why such a big hard drive? Is there something coming soon that is going to require so much storage space? We know Sony have been discussing video and music downloads for quite some time, so is it finally on the horizon?

Speculation on this can go on forever. We're going to remain skeptical until something concrete appears. If it's anything like the 40GB or 80GB revelations, we'll know it's coming a few weeks before it's "announced".

This article was originally published on Joystiq.

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