Gizmodo reports that the current iteration of the PS3 is running too hot.
Our girlish cousins over at Kotaku discovered that the majesty of the PS3 just cannot be contained within the tiny confines of its case. It seems that there are no PS3 beta units simply because there is no way to fit all of the powerful, expensive components inside a plastic box and that it will be downgraded considerably in order to ensure that it won’t burst into flames or become sentient when you plug it in.
Phantom Insider says: The current designs despite having vents all over the place apparently still cant dissipate the heat to sufficient levels Phantom Insider says: And yields on 3.2 Gigaherz CELL processors are too low.
Red says: They can’t produce them in mass supply still?
Phantom Insider: so the final release might run only at 2.8 gigaherz
MSFT-SNE 1-yr comparison chart: