Just announced at Sony's E3 conference:
November 17 US launch
All units will have built in hard drives
$499 for 20GB HDD
$599 for 60GB HDD
Plays Blu-Ray discs (movies and games), and is fully backwards-compatible with the PS2 (standard DVD movies, DVD-ROM PS2 games, CD-ROM PS2 games, CD-ROM PSX games, audio CDs)
Ships with a wireless controller that looks exactly like the Dual Shock, but is, uh, wireless, and has motion-control sensors