Sony has announced the 40GB PS3 for US at the pricing point of $399. It only has 2 USB ports instead of 4 ports. And it will not play any PS2 games.
Sony also lowered the 80GB PS3 to $499.
On lacking PS2 backward compatibility for the 40GB model, SCEA CEO Jack Tretton, the removal isn't due to "dramatically reducing Sony's cost of manufacturing", but is part of an effort to "encourage buyers of the entry-level PlayStation 3 to purchase more games designed specifically for the new system."
With the new price drop, this will be the 3rd time in less than 12 month. So much for the original claim of "PS3 is such a good value there will be no price for at least 24 month."
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