Sony may roll out $400 40 GB Playstation 3

Posted by Mark Raby

Foster City (CA) - A new version of the PS3 may be heading to the US for the holiday season, reports Ars Technica.

Ars Technica says it has received news from a source that a 40 GB model of the PS3 will be available for Christmas this year.

The same report also says the current 80 GB model will drop in price to around $500.  The 40 GB version would reportedly sell for around $400, making it the lowest-MSRP version of the PS3 since the console's debut 10 months ago.

Since November 2006, three versions of the PS3 have been introduced.  Only one is being manufactured today.  Sony has scrapped the 20 GB and 60 GB models.  The 80 GB model is currently priced at around $600 and gets rid of the Playstation 2 processor, making backwards compatibility more problematic.

Sony is expected to announce major plans for the Playstation 3 at this year's Tokyo Game Show, which debuts next week.