Heres some newer detail i found that were put up on ign.
March 12, 2002 - In the continuing saga of the thing that may or may not be PlayStation 3, which has so captivated the minds of the bored of late, SCE president Ken Kutaragi has dropped another few notes on the potential successor to Sony's current game system in a Korean newspaper. He stated that he envisions the disappearance of videogame consoles as independent appliances if a data communications network can be established with speeds exceeding 15 megabytes per second. With such a network to serve as the means of delivering interactive content and connecting users, the "game system" as it were would be a single unit combining a television and a network connection -- this would be your "PS3," a unit delivering movies, games, music, and other entertainment all downloaded from other sources.
Regardless of the technological possibilities bouncing around, the date presently being pondered is in the vicinity of 2005.
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