Update: Blu-ray movie playback affected.
Update:Ars Technica has a comment from Sony, explaining that while adhering to the AACS guidelines is the reason behind the new move, it only affects Blu-ray movies, not video game output.
“The new CECH-3000 series PS3 requires HDMI only for BD movie output in HD, in compliance with AACS standards,” Sony says. “PS3 continues to support component output for HD gaming and streaming content.”
Original story:
High definition video output via analogue component output is being phased out on new model PlayStation 3s, according to a report from Kotaku.