The rumour of a 120GB+ PS3 has been gestating for a few days now and SCEE has seen fit to clarify that, even if such a machine existed, it won't be coming to the UK. In a statement to GameIndustry.biz a Sony representative said that they "do not currently have any plans to release a 120GB PlayStation 3 in the UK". This puts pay to the idea that the extra HD space was for the upcoming PlayTV service, which launches in the region in March. Which is a shame, really, because the extra space would really come in handy.
No doubt rumours will continue regarding a release of a 120GB+ PS3 in America until SCEA shoot it down, as SCEE has, or until we start getting leaks from the big electronics stores. That's what usually happens, at least.