Thats right, the PS3 will sell the hard drive as an add on (just like for the PS2) rather than include it with the power house system. The machine is designed to accommodate a 2.5" hard drive package,
But sony claims this Hard Drive will be used for a wide range of games (unlike the PS2s- Final Fantasy XI, SOCOM II) and media., such as the ability to download media from online stores and possibly even to rip DVDs to the drive. Its also possible for Sony to adpot selling two differnt verions of the console (one with, and one without a hard drive for te truely insistent)