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At this point it is just a rumour, and all of the photos are just speculation on the magazines and forums.
Yamaha has a 125 and 150 entry level bike, but they are just single cylinder jobs and extremely underpowered.
They will have to do something I would think, just like Honda has. They can't afford not to be in the most popular sized engine class for road bikes
 

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For those who haven't caught the buzz yet:

Yamaha R4 250 cc sports bike |



I wouldn't mind taking one for a spin, but would probably get one anyway, with inverted forks, dual disks and a proper shock in the rear. Even if it's a bit underpowered, it would be glued to the road!
 

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Big thumbs up!!! Competition will only make the Ninja better........ At least I hope so. When we looked at 250's for my son the Honda just did not do it for either of us - coming from a guy who owns 3 Honda cars currently! The Yamaha however looks very tempting .
 
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