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Despite Phil Harrison stating that there will be no difference between the two PS3 models he's clearly been mis-informed - if the specs sheets are to be believed, there are a number of differences.
There will be no wifi connectivity, no HDMI and no support for a memory stick, SD or compact flash on the 20Gb unit.There is also a rumour that this cheaper version will not support wireless controllers. We'd make an educated guess that both versions will have wireless controllers - otherwise it would defeat the point of having a motion sensor - plus the controllers run on Blutooth anyway, so having no Wi-Fi would make absolutely no difference. Oh, and there's the small matter of the wireless controllers being stated on the official spec sheets.
Last Monday, Phil Harrison surprisingly said,"What we should be clear about is that the functionality is identical in both machines. There is no difference in what the machine does."
This is where the confusion lies,on one hand Sony have told us that there is no difference (apart from the Hard Drive), but the official spec sheets tell us otherwise. The differences between the two versions of the PS3 won't affect the casual gamer, but it's still good to know what you'll actually get for your money.
So, in short:
PS3 60GB System
Hard Drive Size
60GB
Wi-Fi
Yes
HDMI connection
Yes
Memory card reader
Yes
PS3 20GB System
Hard Drive Size
20GB
Wi-Fi
No
HDMI connection
No
Memory card reader
No
Hope that's cleared it up! These will be the ONLY differences between the two versions.