The 16gb model can actually be a few things.
1) It can be an attempt at a cloud based system.
2) The 16gb will be cheaper and more for people who have large hdds for their ps3 (what is the point on spending $300 on a ps3 with 250gb when you can get one for $200 and swap an already existing hdd into it?)
3) It is one of the biggest troll we've seen from Sony.
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