Sony Drops Prices, Confirms 40GB PS3

Sony confirmed the speculation Thursday, officially announcing a 40GB PS3 model for the United States, which will be available for $399 USD on November 2. The 40GB model already made its debut in Europe and Japan. In addition, the company made a surprise price drop on its 80GB model, which will now run $499 USD.

The price cuts come as retailers prepare to gear up for the holiday season, and as supplies for Sony's discontinued $499 60GB PS3 dry up. The 40GB PS3 has no backwards compatibility with PlayStation 2 games, while the 80GB model has "limited" support. Sony has bundled Spider-Man 3 in Blu-ray format with the 40GB PS3.

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