Looking for a cheap PS3? Good news: a flash-based 12GB PS3 is available starting today. You can order the system online or pick it up in-store through Best Buy, which has the system for $199.99, and in a bundle that includes the system and two games (Uncharted 3: Drake's Deception GOTY Edition and The Last of Us) for $259.98. For our Canadian friends, you can pick up the system via FutureShop.
If the low memory won't cut it for you, the new model supports external storage through the system's USB ports.