Here's apart of a new article:
A Sony public relations representative didn't specifically deny the report, stating to Reuters, "We cannot comment on analyst reports. At the present, we're aiming for a spring 2006 launch, just as planned." Reuters points out that Sony's comments did not specify a territory.
While sticking to its guns regarding a spring launch, the SCE PR agent admitted, "If we cannot finalize the specifications, we cannot release the PS3," adding, "We're currently waiting until the last minute for the specifications to be finalized." Asked what would happen in the case of a delay in finalizing the specifications, the Sony rep said, "We'd end up selecting the best time and releasing it. However, we cannot comment yet."
I haven't really thought about it, but they could go ahead and release, and then release upgrades later.