Wow, I go off to Rome for a few days and I completely miss all the E3 announcements, including this biggie from Sony. So the PS3 is pulling an Xbox 360, where they have a lower-priced model (although as Engadget points out, it's hard to call a $500 console "lower-priced"... maybe less highly priced?), and a higher-end model. Everyone picked up on the 20GB vs 60GB hard drive, but others like Engadget picked up on some other big differences. That lack of HDMI will really bite those people if studios decide to implement downsampling their movies over analog connections, as previously discussed in this here blog.
$500 PS3 to lack HDMI, WiFi, card reader - Engadget
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