Rumors are flying this morning that Sony is having problems with the PS3 that will more than likely delay its launch according to gaming site Kotaku. The inside source who had been working with the next-gen gaming machine reported that Sony is having trouble with the PS3 graphics engine and also the prototype left much to be desired.

He claimed that Sony miscalculated the added complexity of the cell infrastructure in its graphics engine and this was having adverse effects on development.

With a March 2006 scheduled launch date, we can only hope that everything goes as planned, however we would either expect a later launch date or a slightly buggy PS3.

A report has confirmed that Asustek Computer has begun shipping PlayStation3 consoles to Sony this month. The initial delivery will consist of 200,000 consoles, and production should continue at 200,000 consoles per month until October when it will rise to 2 million.

The information allays fears that many people had about Sony's ability to have enough units to go to market for the November release date.

Okay, so we probably wouldn't recommend you list it at all (otherwise, how would you enjoy that 1080p goodness?), but one site went a little further in clarifying eBay's policies on the PS3 considering they have been cancelling the auctions left and right.

eBay Says: "I want to first clear up some confusion surrounding the Playstation 3 auctions, as per your questions via e-mail. There is no "90 day deal" between E-Bay and Sony. I understand that many game store employees were told this during meetings of some sort, but it is not entirely true. There is certainly a deal though, but it is not what you think. Sony asked us to cancel PS3 auctions for the sole protection of the consumer. I am sure you are aware of what happened last year with the Xbox 360 console. We didn't stop any auctions, even ones with reservations mind you, and what happened was a disaster. People bought what they thought was an Xbox 360, and instead received a picture of one.

Neither Sony nor E-Bay wanted this to happen this time around. Therefore we came to the agreement that our terms of service be altered in this case. We will be continuously pulling auctions down until launch."

eBay requires that you wait to list until the console is in-hand, and they require a picture of your PS3 unit with your eBay handle on the picture somewhere. Stringent, yes, but better to have that than have lots of n00bs lose $2500 to a scammer.

Sony has confirmed what we've been hearing for a few days now with the $100 price cuts on the PlayStation 3. The 20GB model has gone away, and the 60GB model has gone from $599 to $499. In addition, we will be seeing the 80GB model that Asia already has in August - you can get your hands on that one for $599.

As far as we can tell, the only differences between the 60GB and 80GB models will be the hard drive size, but Engadget is saying that there's the possibility of the 80GB model having a SixAxis controller with the rumble feature so sorely missed on the PS3 so far. Of course, Microsoft responded quickly to the price drop with one of their own, most likely to be announced tomorrow night.