Both models of the Japanese PlayStation 3 will be packaged with only composite (red, white, and yellow) cables, according to a report from uber-popular gaming magazine Famitsu. We've talked to death about its lack of an HDMI cable, component cable inputs are available even on standard definition screens to enhance the image, as are S-video inputs.
Those with PS2 component cables will be happy to know that they work with the PS3. A quick search on GameStop reveals a third-party PS2 component cable for only $14.99. While $15 is relatively little money to the consumer, it would likely cost Sony even less to pack in a cable of its own, or at least create a six-prong composite/component hybrid, similar to the Xbox 360.
Let's throw this one to the masses: are those who intend to buy a PlayStation 3 discouraged by this news?
[Thanks, The Dude]
[Update 1: clarified source, currently affected regions.]