umm the highlights so far
The cell processor will run at 3.2 GHZ (like the 360). It's a 9 thread processor (360 has 3 processors that do 2 threads for a total of 6 threads) so it will be able to do more calculations (they estimate it to do about 200Gigaflops).
It will use a Blu-ray Disc drive (a high definition format DVD single layer holds 25GB).
It will be released in spring 2006 in japan, late fall in America.
It will have 6 USB ports. 4 in the front 2 in the back (why so many i have no clue.)
Memory- 512MB (256MB XDR Main RAM , 256MB GDDR3 VRAM)
Wireless (bluetooth) controllers. It will support up to 7 of them (is it just me or is that an odd ass number. I mean unless you connect it to multiple TV's 7 controllers is pointless. even with my 50in TV a 7 way split is way to small).
PSP connectivity (you'll be able to use the PSP as a controller)
You will be able to connect other digital devices (camera's mp3 players etc.) to stream music movies and photos.
there is a slot for a Hard drive. its capacity has not yet been determined.
Supposedly they are doing an online service. No clue as to what it will be like or how it will match against XBL.
It will also be backwards compatible (can play PS and PS2 games)
more updates coming