psn id: gingo... this seems a good idea but do sony really want 3 SKU'S (not including 20gig) circulating the world at the same time that is the question

NOt a good idea for the 40 gig just keep it 60 and drop it  to 399.99 and keep the 80 gig at 499.99.

I think they should just stick w/ the 80gb. how much does it cost to make a 40GB HDD compared to that of a 80GB HDD anyway?

@Gingo

3 SKUs? Sony is suppose to drop the 60GB model after they sell everything.. So theres only the 80GB remaining... i think the 40Gb is a good thing for this holiday season

Whatever gets sales up... I've already got my 80giger so I am all for anything that creates a bigger install base.

i think that a 40 gig ps3 for 400 is a rely good move for sony. it apeals to a much broder audience.

Why not just keep the 60 gig.  It pisses me off I spent 24 hours waiting outside Walmart for a soon to be obsolete 60 gig. PS3.  Sony putting out an 80 gig. model is fine, and almost expected.  But why drop the 60 entirely and make a 40?  Kinda pointless and a slap in the face I'd say.  It's not like the prices of hard drives are expensive or anything.  You could pick a 300 gig. up for a $100.00.  Oh well... Sony has their reasons.

Bad idea, methinks.  I've been hearing about the 80GB having poorer backwards compatibility than the 60GB, which is why it's cheaper to produce.  If the rumor is true then I will most likely skip out on buying an 80GB this holiday.  Perhaps if the 60GB model is still around then I will buy one (hopefully at a reduced price for the holidays).

There's obviously a reason for this. They dropped the 20GB because most people thought that it was too little space. They then brought in the 80GB because some people wanted more space, and they wanted to give people some options. If they were to keep the 60GB and drop it to $400 and have the 80GB be $500, most people would just go for the 60GB. That's why they got rid of the 60GB, to make a broad range between the space on the 2 SKUs. It has nothing to do with costs of hard drives.

I don't think the 40gig will sell as well compared to the 80/60gig skus.  I think it will become around as popular as the 20gig honestly.  I am actually more surprised there is not a version around 100gig or so. 

Trust me, it will sell well. Most people who want a PS3 and don't have one are complaining about the price. $400 is hard to resist.

80gb has "worse" backwards compality because it no longer has the ps1 and ps2 chips but uses software emulation (like euro ps3's) this is not a bad thing, as people are constantly adding more and more backwards compatability with each update. Besides, most of the thousands of  ps2 and ps1 games that people love are supported. Do you really need the ability to play barbie's mansion of fun on your ps3? Is that even a title?

Great idea.This will help sony gain more market share this holiday season and compete with xbox cheaper sku's.

U guys don't understand, its $100 cheaper because it is NOT gonna have backwards compadability nor will it have WiFi or the extra 40gb of hard drive space, i think its a brilliant idea because look at the Wii, it has nothing but ppl still buy it, excellent move by sony

I was going to buy two more this year anyways, good news..

I just realized, if they do actually release a 40GB at that price, then there will be a good blu-ray player on the market for $400. That's such a good deal. This could shoot blu-ray way above HD DVD, not saying that it isn't already.

Its marketing people... Look at both sides of the coin...If you look at it from a get more bang for your buck... for an extra hundred you can get twice as much storage but not twice the price ...And then the other side would be "I can save $100 and get the 40 gig" Either way I see a PS3 market frequency in the near future.

tmac032986, the 60GB SKU might just be the best one. It has all the features plus backwards compatibility at the hardware level using EE, whereas the newer skus use software emulation (kind of buggy). I'd say the 60 GB is the cream of the crop so stop complaining. Also, where the heck do you buy your hard drives? Unless you're buying an adapter and using a 3.5" external, you have to pay a premium for 5400 rpm sata 2.5" laptop drives (which is what the ps3 comes w/) i just bought a 200 gb 2.5" 7200 rpm, and it cost $220 at newegg.

Playstation3Pride,where did you read the B/C removal,it is software emulated and the graphic synthesizer(hope i spelt that right) doesn't cost that much,it is under ten bucks.The only pricy part of ps3 is blu-ray,and that technology is also becoming cheaper to develop,so basically the $100 cut would make sense.

I personally think this is great news. I have a 60 gig and quite happy but as a fan I want to see the machine to be a big hit! By droping the average top-modle to 499 your below (though its just a dollar) that dreaded 5 number. If the 399 is much like say the 80 gig but with smaller HD thats awesome. Now you have a great product to put up against MS's pro system. You get 20 gig more, wifi already in the system and Blu-ray. I think people will see value in that sku. Same with 499 compared to the elite seeing that if you want wifi for an xbox the OFFICAL adapter is 100 bucks.

PS3-THe Ultimate Machine(nice name btw), this rumor has been around forever just google it thats all an u will get multiple links saying the same thing, o and i forgot one huge piece missing from a 40 gigger, for HD TV owners, that the 40gb SKU will loose HMDI as well, meaning u will have to buy the 5 prong picture/audio connections, could decide for some ppl what SKU they want, but all in all still awesome idea from SONY

lets hope that this will boost ps3 sales and finally overtake x360 in sale numbers !!!

40 GB is retarded. Shoulda jst dropped the 60GB version another 100 bucks. I'm guessing the 40GB will be EMO less, but my question is will it look like the 60 GB version or the 20GB version. Mem readers?

So what are they taking out of the 40gb PS3.. Since they took out the emotion engine out of the 80gb that affects the backwards compatability. If they are only dropping it by 40gb's and nothing else then it will probably do well, but then again an extra 100 bucks get's you more space.... I don't know I am kinda mixed on this one.

The 40 gig only works if it's the exact same machine as the 80 gig with a smaller drive. M$ STARTED THE RUMOR OF A 40GIG SYSTEM and added in retarded caveats like no backwards compatability (even the 80gb has decent Backwards compatability and it dosent even HAVE an Emotion Engine anymore!) and removing all the card slots and wifi. RIDICULOUS! why? because the 20gb is DEAD because people wanted the more complete system. I agree with the possibility of a 80gb at 500 bucks, infact I predicted it during the first price drop but the 40gig RUMOR is nother more than a RUMOR that was started by RUMOR mongering dipshlts. 99 dollar PS2 is a given.

Exactly, the loss of features to non-EE model PS3s was all pure FUD, we've already seen several non-EE model PS3s and they still have all the features, with the only difference being using only software for backwards compatibility which is being improved all the time.

the trick is to get people to the 80 gig who have the money and the 40 gig is for the cheaper customer why would someone capable of buying a 80 gig get a 40 gig if they want it just for the player then the 40 but if ya want a player and  double the hdd space for extra content then you get the 80gig but the marketing strategy is clear here get the 80 gig for you and maybe the 40 for a son or nephew or something great strategy keep it up sony starting to lookin good

4gb and it's only $399 that is a great price for most everybody. Most people just want to play PS3 games. they dont care much for WiFi and the big hardrive. .....sure yeah, WiFi built-in is nice.

if the only difference between the 80gb and 40gb its the HDD then the 40gb will be a hit if not will be a total failure.

This would be a good move for Sony if it were to happen.  PS3, it's in the box!

kidkotic2001 has the right idea. Why do a 40GB when they can just keep the 60GB