With an ad from Kmart i guess the cat is out of the bag with this rumor they don’t state much details just a Description
PS3, SLIM High-Definition Blu-ray player for the best movie experience. Free PLAYSTATION Network membership. 120GB HDD for downloading games, music, videos, and photos. Includes DUAL SHOCK 3 controller. HDMI output for 1080p resolution.
A 120GB HDD is not bad as long as it comes with a sweet bundle i might pick this up, also note that the picture above is NOT that actual PS3 just an artist rendering. We just gotta sit and wait for the official word from Sony