The latest news on the redesigned PlayStation 3 confirms what we have been hearing from our sources. The new PS3 console, which is becoming known as the “Super Slim” model, looks like a blending of several design influences of the PlayStation 3 redesigns of the past, along with splash of new added.

The unit is smaller and looks to have a rigid surface, from pictures that have appeared on the web. The pictures we have seen do seem to be legit. The photos seem to suggest a top loading design, but it is hard to say for sure from the photos we have seen. A thin front loading tray could be possible, but that would not necessarily fit into an overall cost reduction strategy, say experts that we spoke with, but they do admit that a lower-cost drive with a tray is possible.

Perhaps the most interesting of the developments is the offering of a 16GB unit which uses embedded flash memory for storage. We suspect that this will be a new lower-cost option that Sony will position to go against the Xbox 360 4GB low-end model. Sony will still offer 250GB and 500GB hard drive options for the console, as well in the new configuration.

With the introduction of the 16GB model, analysts that we spoke with agree with our assessment that Sony is planning a price cut of some kind, but it is difficult to say if that will come now or later on. One analyst we spoke with also pointed out that it is possible that Sony may opt to only offer the 16GB model in specific regions where it is feels it has the best chance to do well with a lower-cost unit, which means not every region may get it. We think, however, that we will see the lower-cost unit going toe to toe with Microsoft in all regions by the holidays.

You can see pictures of the Super Slim here.