Just about every gaming news site was under the assumption that Sony had begun manufacturing the PS3 - even non gaming sites like Forbes wrote about it.

Well, apparently we've all been taking crazy pills, because in an interview with Gamespot yesterday Kaz said they haven't started production yet...

"GS: So is the PS3 already being manufactured?

KH: We haven't started manufacturing yet. Some of our ops guys were actually just in China, and also in Japan just reviewing the [production] lines and everything else. But they are, again, preparing as we speak to get the manufacturing going. We've not announced and we haven't set really a specific date to say, "As of this day we're going to start manufacturing."

It's hard to imagine a PlayStation completely bombing, but the PS3 is setting itself up for failure in every way imaginable.

Read Gamespot's full interview here