I did not forget one zero or two zeros, you read the title right. Sony has announced a 12GB PS3 for $199.99 dollars. It supports external storage or you could swap out the 12GB for something bigger like 500 or 750GB.
You can find this very small PS3 in either best buys or at FutureShop.com
This is an odd amount of space since most flash drives, SD Cards, and Memory Cards bigger than 8GB have at least 16GB of space, and very few or almost no company sells storage like 9-15GB of space.
I bet a few GBs of the 12GBs are used to install the PS3's operating systems, demos, trailers, and bundled files, so there would be less than 12GB of free space.