Rumor has officially become fact: according to, Sony has now dropped the price of the 60GB PS3 in Europe to GBP 349 and introduced what they're calling a new "entry level" 40GB model, which will have a price tag of GBP 299.

These new prices will become reality on October 10, and Sony is also preparing a 60GB "value pack" that is very similar to the Starter Pack they had for the system's launch. Consumers will get two first-party titles for same GBP 349 retail price, along with one controller. This will replace that current bundle sitting on store shelves, which includes two first-party games plus an extra Sixaxis controller. In regards to the new 40GB PS3, as anticipated by the rumors, it will have only two USB ports (the other models have four), and it will not have the multi-memory card slot or "backwards compatibility with the PlayStation 2 back catalogue."

Why'd they do this? Well, it should be obvious, but Sony's official reason for introducing the new 40GB PS3 and revised 60GB bundle package at the new price is simple: "feedback from thousands of existing PS3 owners as well as research into future potential PS3 owners." Here's an official statement-

"As we approach our first PlayStation Christmas, it is satisfying to be able to offer UK consumers the choice of two PlayStation 3 packages both now representing remarkable value," said Ray Maguire, MD of SCEUK. "We have a brand new 40 GB machine that represents an excellent entry point into the world of high definition games and movies, and we have the fully featured 60GB machine being offered with two next-generation gaming experiences at a highly competitive price."

David Reeves, president of Sony Computer Entertainment Europe, chimed in with- "The introduction of the new PS3 has been the result of extensive research into the entertainment needs and preferences of the next-generation PS3 owners." This is a big deal for Sony as they approach the holiday season, but of course, we here in the US have one very obvious question: are we getting this 40GB PS3, too? Stay tuned for any news regarding that very real possibility.

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