Recent rumor and speculation says that Sony will announce a new 40GB PS3 model – priced at $399 – at TGS this week. But one day before Sony's press conference, GamesRadar has apparently learned from an inside source that such a model is indeed on the way…but it won't have all the bells and whistles of the 60GB and 80GB models.

We're not exactly sure just how stripped down the 40GB PS3 will be, but we can't imagine it'll be too close to the 20GB model that simply failed to sell. Obviously, this new model is designed to appeal to those without quite as much cash flow to dedicate to gaming; even the 20GB PS3 launched at $500. Besides the smaller hard drive, perhaps we'll be looking at lacking backwards compatibility (like the 80GB version), or the exclusion of WiFi support. We expect full details on this mysterious new 40GB PS3 tomorrow, and it will hopefully fit the bill (pun intended) for more consumers.

By the same token, it seems logical to assume that the much anticipated price drop for the 80GB model is also on the way. It makes far more sense to have a 40GB at $399 and a 80GB at $499 on store shelves, especially with the holidays right around the corner. Analysts have been predicting a price drop for Christmas, and some have even said we can expect another cut in early 2008. But for now, I think we'll all just be happy with the announcement of the full 80GB PS3 falling to $499.

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