You know the drill. First it starts out from an "anonymous inside source" then it gets construed until the cows come home. That's about how the whole rumor concerning the PlayStation 3 downgrade started. Apparently an "inside source" revealed that Sony couldn't quite get all the pieces to fit and still make it cool correctly, thus needing a downgrade. He or she also said that the Cell could be clocked down from 3.2GHz to 2.8GHz in order to manufacture them in greater mass.
Well Jonathan Fargher, a Sony rep, has stepped up to dismiss those rumors for the BS that they are. "Developers have been working with PS3 dev kits for anywhere between eight and 12 months, and to suggest that we'd now take the decision to downgrade the hardware at such a late stage, is, well, ridiculous."
And to address the issue of sticking all those components inside the already large casing, he said they "do have over 40 years of experience making consumer electronics equipment, and therefore, extensive experience in making things fit."