The latest issue of independent PlayStation 2/3 magazine PSM has quite a few details regarding the PS3, including some already-suspected information as well as a couple surprises. Details include:

• Exhaustive connectivity between PSP and PS3: PSP will interface with the PS3 through wi-fi, serving as a remote and media manager for the console. PSP can also access PS3 over the internet, so the two can interface even when you're far away.
• No standard 1080i (or 1080p) support: Most games will apparently run at 720p; use of 1080i and 1080p is only at the developer's discretion. All games should have support for 480p and 480i for gamers without HDTVs.
• Wider storage medium support than expected: PS3 will support Memory Sticks, Compact Flash, SD cards, Blu-Ray (of course), and SACD. UMD support doesn't seem present, though.
• Software-only backwards compatibility: While PS3 will play PS1/PS2 games, it has no ports for peripherals for those systems, including their memory cards. All save data must be accessed through flash memory cards (that means no save data can be stored on the hard drive either, according to PSM). PSM speculates that Sony will release a USB multi-tap like device with legacy support for controllers and memory cards.
• Wireless access point: The PS3 will serve as a wireless access point (think they'll go out of their way to lock out access to Nintendo's DS online service?). The PSM article also mentions router functionality, though past reports have indicated that this will no longer be the case.
• Release date: Just a general "spring 2006". Some developers assume this applies to Japan, Europe, and North America.
• Wacky controller: Yeah, it's still a banana.

None of the game footage was taken from software running on systems using the final PS3 graphics chip, the Reality Synthesizer (RSX). ... The most stunning demo, Killzone PS3, was from an actual game engine running on an alpha kit--at less than five frames per second. The footage was sped up to 60fps in post-production.