After launching in 2006 with models equipped with 60GB and 20GB hard drives, the PlayStation 3 has seen its storage capacity balloon. The console, which has also lost PlayStation 2 backward compatibility and the ability to run Linux, is currently available with either a 120GB or a 250GB drive. The space can be used for game installs and downloadable titles, or for video, music, and photo files in its capacity as a media server.

　　Now, if a report on British site CVG is to believed, Sony is readying a model that will drastically increase the console's storage capacity. Citing unnamed sources, the site says Sony will phase out the 120GB PS3 and introduce a new model with a massive 500GB hard drive.

　　Sony may be increasing the PS3's hard drive size yet again.

　　The new PS3 will also reportedly have improved Wi-Fi upgraded to the 802.11n wireless standard. Current models use the slower 802.11 b/g standard, which is also used by the Nintendo Wii. The Xbox 360 has no built-in wireless, with external 802.11n and 802.11 b/g adapters sold separately. However, the prematurely outed new slimline Xbox 360 appears to have built-in Wi-Fi, the standard of which is unclear.

　　CVG's report comes shortly after tech blog Engadget discovered Sony has registered two new PS3 models with the Federal Communications Commission. It also may be a bit moot to the tech-savvy, as the console is designed to allow consumers to remove and upgrade its hard drive with a standard laptop drive.

　　For more on Sony's E3 2010 plans, come back Tuesday for a live blog of the company's press briefing or watch a live video stream of it on GameSpot's E3 2010 event page.