The Sony Press Conference is happening right now. Lots of Sony Playstation sites are down. The Live video stream of IGN is overloaded already. It is hard to get on information.
The first details of the Sony Playstation 3 have been published on Gamespot.
First the bad news - The PS3 is not coming in 2005. Sony announces a 2006 launch.

The good news - the PS3 will be backward compatible with PS2 and will have a Blu-ray DVD drive. The new Sony Game Console will run a CELL chip at 3.2GHz with 2.18TFLOPS performance.
It will also have slots for Memory Stick Duo, a SD slot, and a compact flash memory slot. It will also sport a detachable 2.5 inch HDD.
The PS3 is supposed to support up to 7 Bluetooth controllers. It will also have six USB slots for peripherals. The PS3 will have multimedia features like video chat, internet access, digital photo viewing, digital audio and video.
More details on Gamespot. More details to come soon.

UPDATE:
First Official Sony PS3 Photo!


Interim Updates:

7:27pm EST:
The IGN Live Video broadcast has been delayed by 30min.
The Sony PS3 might have 2 HDMI outputs, this could mean VR displays.

7:31pm EST:
Still no photo of the PS3. The Sony PSP will be able to connect to the PS3, some kind of remot access. The wireless controller have batteries that hold 24 hours. I hope the PS3 has a charging facility.

7:33pm EST:
IGN just moved its web-cast to 5pm. It is 1:30am in Europe from where I am writing this. But what should I say, I need to see at least a photo of the PS3 before can go to sleep.

7:39pm EST:
The Sony PS3 graphics chip, called the RSX "Reality Synthesizer", is based on Nvidia technology. The GPU will have 128bit pixel precision, 1080p resolution HD resolution. The RSX is apparently more powerful than two GeForce 6800 ultras. More details on updated Gamespot article.

8:04pm EST:
The PS3 photos are here, and it is good. The IGN webcast has been delayed by another hour. I will watch it tomorrow morning. The Sony PS3 looks like to be a hit!