After conflicting reports regarding the chipset being used for the new 40GB PlayStation 3 model, Sony's Kaz Hirai has explained to Japanese publication Impress that the new model will indeed use 65nm Cell processor chips, which will greatly reduce the power consumption of the console, while currently sticking with the 90nm RSX graphics chip.
Sony had denied initial reports of 65nm chips being used in 40GB version. Also mentioned in the interview is an indication that Sony is open, per se, to the possibility of bringing back the 20GB or 60GB models. "Depending on how the market reacts, it's possible for Sony to produce them again," he said. That would probably take people with pitchforks storming the Sony Castle demanding Metal Gear Solid 3 be fully compatible; we don't see it happening.