Major online retailers, such as amazon.com and Gamestop.com, are now taking pre-orders for Sony's upcoming 40GB PS3 system. The $399 system will lose backwards compatibility with PS2 games and memory card readers. It will, however, come bundled with a Spider-man 3 Blu-ray movie. Although this is the cheapest PS3 model yet, this version will still retain built-in wireless support.

The system will be available on November 2nd. How many PS3 Fanboy readers are interested in picking this price-reduced model?

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Comparison: Is the 40GB PS3 such a bad deal?

Remember the 20GB system? Long thought gone, the system is still available at Gamestop.com for $380. This is the cheapest system you can get. At $20 less than the 40GB model, you lose wi-fi connectivity and 20GB of hard disk space. However, you gain backwards compatibility. For those that want the cheapest PS3 that can also play PS2 games, this one may be for you.

Thanks to the price drop, the 60GB model officially costs the same as the 80GB one. However, retailers aren't going for any of that nonsense and are now packaging the system with many other goodies. Walmart.com, for example, is bundling one free game and a Blu-ray remote with the 60GB system (making it a far better deal than the 80GB, in our opinion). Retail Best Buy stores will soon run a promotion where you can get a free copy of Heavenly Sword (or Lair, if you so dare) and an extra controller with the 60GB system. Obviously, these are "while supplies last," so you may have to rush to take advantage of these deals.

[Via CAG]

Is the 40GB PS3 really such a bad deal? We stacked a number of systems side by side to see which gaming console is the best value (at least, in terms of hardware). For example, when compared to the Xbox 360, the $399 PS3 may seem like a pretty good deal, provided you're looking for built-in wi-fi and an HD movie player. These two peripherals cost $99 and $179 each for the Xbox 360.

However, let's not forget that the 20GB Xbox 360 includes some backwards compatibility support (the 40GB PS3 does not). In addition, you get two free games with the system.

The 60GB PS3 is in an interesting position right now, as it currently costs the same as the 80GB model. For the same price, you can get a larger hard drive and a free game. The only difference? The 80GB has more limited backwards compatibility support. Patrick Seybold from SCEA reminds us that "There are no plans to lower the price of the 60GB model. The 60GB model has nearly 95% backwards compatibility, so consumers looking for that feature have the option while supplies last."

[Update: Chart updated with user suggested information. Updated with minor corrections. Thanks, readers!]

Bet you didn't see this coming. We certainly didn't (that's sarcasm, by the way). SCEA have now confirmed that the 40GB PS3 will be coming to America for only $400 on November the 2nd. Not only that, but the 80GB model with have its price slashed from $600 to $500.

Of course, the 40GB will "suffer" the same "drawbacks" as it does in Europe and Japan. Namely, a lack of backwards compatability, fewer USB ports and no memory card readers. Expect a surge in the sales of the 80GB system. We're just confused as to why Sony is waiting until November 2nd to get this launched. It's almost been out for a week over in Europe.

[Update 1: Price-reduced 80GB systems are now available at GameStop. Also available at amazon.com]
[Update 2: Images of the 40GB box have been uploaded. Check past the break.]

Take this as even further confirmation that the 40GB PS3 is coming. Scheduled to be in stock on 10/28, the new PS3 is ringing up at a nice $399.99. Add a Spider-man 3 Blu-ray disc, remove PS2 support, and you have one of the least surprising price drops ever. Sony won't "officially" announce this yet, of course -- there's just too many 60GB systems lying around.

[Via Joystiq]

And the price drop is the cause. Since releasing the 40GB model and reducing the price of the 60GB one, sales have skyrocketed, besting even the Xbox 360. However, the PS3 was unable to trounce upon the sales leaders, Wii and DS.

With the recent surge in popularity of the PS3, games like Resistance have been climbing up the all formats chart. Insomniac's year-old FPS is now the eight best selling game in the territory.

[Thanks, Boris!]

Signs are pointing to a November 2nd launch of the price (and feature) reduced 40GB PS3. However, where is the buzz? Why is there no official confirmation from SCEA? "These rolling announcements suggest to me that Sony has an inventory control problem, with too many unsold 60GB units out there, and they don't want to have to cut the price to clear them," Wedbush Morgan securities analyst Michael Pachter told GI.biz.

Certainly, it appears that 60GB machines are still in ample supply in spite of Sony's proclamation that the system is no longer being manufactured. Are the systems selling at an even slower rate than anticipated? Seemingly. However, what will happen when November 2nd rolls along, and 60GB systems are still in stock? Sony will have to "accept reality and bundle [the 60GB with] a game and an extra controller for USD 499.99, giving consumers some value for their money." However, in spite of a price drop, it appears that Pachter is not confident that a price drop will significantly increase sales for Sony's system. What price must the PS3 reach for it to appeal to the masses?

Just like before, the signs are becoming clear: the 40GB PS3 is making its way to America ... soon. Model 98006, or "PS3 40GB Spider-," can be found in the computer databases of Sony's store.Supposedly the system will be in stock on October 28th and will be on sale on November 2nd. We think everyone can make a pretty safe guess as to what movie will be bundled with the system based on the description. The system will retail for $400, as predicted by the internet community. We'll have to wait for Sony to provide confirmation -- which we don't think is too far away at this point.

[Thanks, Andrew H.!]

With the European 40GB PlayStation 3 finally out in the open, Sony execs just can't stop talking about it. According to Ray Maguire, SCE UK managing director, Sony's newest console is part of "a very carefully thought-out plan."

While acknowledging that other factors like decreasing production costs, industry pressure and a need to increase its install base contributed, Maguire said Sony has been considering this model since the PlayStation 3 launched.

Of course, the main complaint against the PlayStation 3 has always been its price, but Maguire thinks the lower-priced 40GB model will appease the haters. "If the product was too expensive, of course they're going to feel 'anti,' but now I imagine there will be some changing of attitudes," he told MCV. It's true, the 40GB model's price is much closer to the Xbox 360's, only with a lot more features. However, only time will tell if the move will help Sony recapture the lead in the console wars.

It seems the 40GB PlayStation 3 is slowly taking over the world, one country at a time. Now that it's headed to every major region, Sony has announced its new system bundled with the Spider-man 3 Blu-ray will soon be released in Saudi Arabia for SR 1,799.

"The introduction of the new PS3 has been the result of extensive research into the entertainment needs and preferences of the next generation of PS3 owners," said Abdul Kader, marketing manager at MECL. "It has allowed us to deliver an extremely advanced, yet incredibly affordable high definition gaming and entertainment system, configured to the needs of the next generation of European PS3 owners."

Although we weren't aware Saudi Arabians were big on gaming, it's great to see Sony spreading the 40GB love throughout the world.

While gamers and retail chains have been mostly praising Sony's new cheaper PS3 (aside from the backward-compatibility issue), the European HD DVD Promotional Group has said the 40GB system won't have much impact on Blu-ray sales in the region.

"The European PS3 price cut will have a minimal impact on the adoption of next generation HD formats. The real battleground is in sales of standalone players and HD DVD is out in front by a massive margin," Co-Chairman of the European HD DVD Promotional Group Ken Graffeo said. According to the group, HD DVD accounts for about 70 percent of the European market, and it expects that number to continue to grow.

However, many believe this year's holiday period will go a long way in deciding which format will reign as king, and we think the HD DVD group may be underestimating the impact of the 40GB PS3.

So, the 40GB PS3 is losing backwards compatibility with PS2 games. Is that a big deal? You voted, but let's hear what the analysts have to say. From a business perspective, it makes sense for Sony to remove the feature. "Cost is hard to gauge, probably $30 - $50 per unit," Wedbush Morgan Securities' Michael Pachter told GameDaily. A significant savings, when one considers the thousands of systems Sony must sell. Will the lack of PS2 support affect PS3 sales? "I thought lack of backward compatibility would hurt the Xbox [360], but it really didn't," Pachter noted.

However, NPD analyst Anita Frazier has some data that might concern Sony. "Nearly 70 percent said that [backwards compatibility] was an important feature to them."

Regardless, when it comes down to the choice between backwards compatibility and saving $100, the choice will be clear for most consumers. Colin Sebastian, an analyst at Lazard Capital Markets noted: "It appears that pricing is becoming more of a priority, which makes sense given where the PS3 is selling in terms of market share. I don't believe removing backwards compatibility is a huge deal, considering that most people who want to play PS2 games will continue to do so on their PS2s."

After announcing that the 40GB PlayStation 3 is headed to Australia, Sony has set some lofty expectations for the new console in the region, Michael Ephraim told Gamespot. The Sony Computer Entertainment of Australia managing editor claimed that while Sony has sold 83,000 units since its launch in March, it expects to meet or exceed that number by the end of the year.

Ephraim also continued Sony's recent tactic of downplaying the significance of the lack of backward compatibility, he also said that at this point, the PS3 and the Wii should no longer be compared to each other. "Nintendo Wii should be compared with PlayStation 2 for the functionality, the experience, and the demographic it appeals to. Consumers in that space will compare between a PS2 and a Wii, not a Wii and a PS3 – they're just completely different animals," he said.

This isn't the first time Sony's said one of its products isn't in direct competition with Nintendo's, but it'd be interesting to see if it'd be singing the same tune if the sales numbers were reversed.

Many people assumed that the PS3 was software emulating PS2 games, ever since the release of the 80GB model. That system removed the Emotion Engine from the hardware, and required Sony to implement a backwards compatibility solution that involved emulation. Many, including Joystiq, wondered why the new 40GB model couldn't do the same.

SCEE's Nick Sharples sent a technical explanation as to why the new 40GB model loses support for PS2 games. "Backwards compatibility for PS2 titles is largely made possible through the use of actual semiconductors, supported by the PS3 system software. The 20GB and 60GB PS3 models launched in Japan and the USA were equipped with both the PS2 Emotion Engine and Graphics Synthesiser chips and we could therefore guarantee over 90% backwards compatibility for PS2 titles.

"The 60GB model launched in Europe was a new model (shared with the 80GB model launched subsequently in USA) which contains only a modified version of the Graphics Synthesiser chip from the PS2 and not the Emotion Engine chip. The European launch model therefore used a combination of software and the modified version of the PS2 Graphics Synthesiser chip to deliver backwards compatibility for PS2 titles. As a result the percentage of backwards compatible PS2 titles was slightly reduced.

"The 40GB model, to be launched in Europe on 10th October, is a new model and is not equipped with any of the semi conductors from the PS2, and backwards compatibility would therefore have to be achieved by software emulation alone." Because each game would have to be individually emulated (much like on the Xbox 360), Sony decided that an effort like that would be much too costly, and opted to remove BC support from the 40GB system entirely. That decision has not only produced a cheaper system for Sony to manufacture, but for consumers to buy as well.