From AP(source),
Sony Corp. on Thursday cut the price of its PlayStation 3 game console in the U.S. and announced an even cheaper model that will arrive before the holiday shopping season.
Starting November 2nd, Sony will be selling a new 40 gig PS3. This newer model features a upgradeable 40 GIG HDD. However, This new model is now missing backwards compatibility with PS2 titles, memory card readers and 2 USB ports(leaving 2 ports remaining).
Sony also announced that their latest model featuring a 80 GIG HDD has been immediately dropped to the MSRP of $499.
