http://scrawlfx.com/2008/05/rumors-sony-developing-transformer-controller-video-service-by-e3
The July 2008 issue of Electronic Gaming Monthly has some interesting rumors this time around. One of those rumors is that Sony Computer Entertainment are working on a peripheral for the PLAYSTATION 3 that "transforms" into different things, one being perfect for an FPS. It's hard to picture how that would work.
The second rumor is that Sony willl be launching their video service around E3 '08, which makes sense, so they can bring us video content straight from E3 as well as some other stuff.