Editors' note: In November of 2009, Sony introduced Netflix to the PlayStation 3 home console. Netflix subscribers can order a free PS3 Netflix Blu-ray Disc online from the site and must use it every time in order to stream a movie. Users can manage their queue and watch any film that's available (including some HD content) for instant viewing. Please see our hands-on review of the Netflix PS3 service.

Back in 2004, four years after first launching the PlayStation 2, Sony brought out a new, much more compact PS2. Timed to come out just as Grand Theft Auto: San Andreas was hitting stores, the redesigned console helped breath new life into the PS2 franchise. It remains on store shelves today--you can pick one up for just $99.

Needless to say, Sony hopes that a trimmed down--and less expensive--PS3 Slim will similarly invigorate sales of the PlayStation 3, which has lagged behind the Nintendo Wii and the Microsoft Xbox 360 and has taken some of the luster off the PlayStation brand (even as earlier versions of the PS3 received high marks from this publication). To many industry observers, the Slim PS3 represents a moment of reckoning for the PS3--a chance at redemption if you will--and clearly some serious engineering has gone into the creation of Sony's latest black gaming box and media player.

Versions

For the 2010 holiday season, Sony will be offering two main models of the PlayStation 3 system, which we've outlined below. Also included is the 250GB PlayStation 3 that is usually offered by specific retailers and will occasionally include a game or accessory pack-in. The most notable difference between all of these models is the internal-hard-drive capacity.

PlayStation 3 Slim (160GB): This Slim model effectively replaces the original 120GB Slim PlayStation 3 and will be sold side by side the 320GB PlayStation 3 Move Bundle for $300.

PlayStation 3 Move Bundle (320GB): Priced at $400, the PlayStation 3 Move Bundle includes a PS3 with a 320GB hard drive, a PlayStation Eye camera, a PlayStation Move controller, and a copy of Sports Champions.

PlayStation 3 Slim (250GB): Usually sold with a packed-in accessory or game, the 250GB PlayStation 3 is only available at certain stores.

Design and features

If you're a fan of the PS3 or have been sitting on the fence, waiting for its price to drop to $299, the good news is that from a features standpoint, the 120GB Slim PS3 is nearly identical to the 80GB and the 160GB "fat" PS3 models that Sony's in the process of phasing out. Aside from losing the capability to install another OS (Linux) on your PS3, nothing much else has changed. You still get built-in Wi-Fi connectivity (the Xbox 360 Wi-Fi adapter is a $100 add-on accessory), two USB ports for plugging in external storage devices and charging the PS3's Bluetooth wireless controller (one DualShock 3 controller comes with the Slim), and the same built-in Profile 2.0 Blu-ray player with BD-Live capabilities.

Like its predecessor, the Slim also supports playback of MPEG-1, MPEG-2, and MPEG-4/h.264 video files from USB or disc-based media, as well as JPEG image viewing (the slideshow functionality is quite impressive). Like the Xbox 360, the PS3 can act as a digital media hub, with the ability to stream content from any DLNA-compatible network device, including PCs and network attached hard drives. And you also get a built-in Web browser (optional Bluetooth keyboards are available), which is serviceable, though not as good as any of the major browsers available for PCs.

Around back, you'll find an Ethernet jack, an HDMI output (no cable included), an optical digital audio output (SPDIF), and the proprietary PlayStation AV output for analog audio and video. A composite AV cable ships with the unit, and because it uses the same connector as the PlayStation 2, that system's S-Video and component cables should work with it, as well (to get HD video, you'll need component or HDMI).

The bad news is that Sony didn't add new features to the Slim. Alas, while we didn't think the company would be nice enough to throw in an IR receiver so you could control the PS3 with a standard IR universal remote, Sony has eschewed IR again. Also, if you're pining to play your collection of PS2 games on Slim, you'll be disappointed to note that backward capability remains a thing of the past (the option only existed only on some of the earlier PS3 systems Sony released).

The story here, then, is all about design, and it's generally a good one. For starters, the Slim is 33 percent smaller and 36 percent lighter than its predecessors, and it really does look significantly more compact when you put it up against the "fat" PS3. Beauty, of course, is in the eye of the beholder, and many people, including this reviewer, think the Slim's new frame is fairly fetching.

Yet, we've also heard people say that the new "textured," or matte, finish gives the system a cheaper look. Maybe so, but pick the Slim up and it feels quite substantial. And while we're sure Sony doesn't want people referring to the Slim using adjectives like cheap (except when it comes to the price tag), the company does want this PS3 to appear more "casual" and appeal to a wider audience (read: casual gamers).