The latest edition of Game Informer magazine finally hit the stands. It contains quiet a lot of juicy new information. They have an exclusive first look at an upcoming game called "Prototype" which is due out on the PS3/360 next year. Details will be published soon.
According Game Informer magazine, a $399 40gig PS3 system is on the way, but it will have no backwards compatibility. They actually expected to hear the announcement at E3 on it. So they may have just heard different rumblings altogether.