It's not hard to believe when all the other consoles are using PPC as well, Sony and Nintendo. They really have little choice due to the heat a higher clock P4 or P4M puts out, gaming consoles need to be compact and not the size of a normal desktop. Not to mention the PPC chips are actually less expensive. However, I do not believe they will be able to fit a multicore 3.5 GHz chip in the box and deal with the heat issues, I mean look at Apple's dual 2.5 90nm G5s that use liquid cooling. I think they may be feeding the rumor mill a bit to scare sony, this is not unheard of in the gaming or computer industry (not to mention it drums up publicity cheap).
A@ron