Sony Confirms $400, 40GB PS3

SCEA President, Jack Tretton, announced today that Sony will release a new 40GB version of the PS3 at a suggested retail price of $400. The new model will feature some slight hardware tweaks including a reduction to two USB ports instead of four and no ports for the different memory card types. But these changes are minor compared to the bombshell that this new 40GB PS3 will not be backwards compatibility with PS2 games, making this the first PS3 to completely ignore PS2 titles.

Look for the new 40GB PS3 as well as a price reduction for the 80GB units, which will go down to $500, on November 2.