Rumor: Sony developing “transformer” controller, video service by E3

The July 2008 issue of Electronic Gaming Monthly has some interesting rumors this time around. One says that Sony Computer Entertainment are working on a peripheral for PlayStation 3 that “transforms” into different things, one being perfect for a first-person shooter.
It’s hard to picture how that would work.
The second rumor is that Sony willl be launching their video service around this year’s E3.
Via NeoGAF.