Yes, the 40GB PS3 is the new model in Europe, but bear one thing in mind, consumers- soon, it will be the only model available, as Sony plans to phase out the 60GB PS3. The electronics giant did the same thing in the U.S., but replaced the 60GB with an 80GB model, which certainly doesn't qualify as an "entry level" version. While early PS3 adopters may feel a little short-changed, here, Sony has offered an explanation for the decision.
According to MCV UK, Sony says all those missing features in the new 40GB model are "easily upgraded," and they clearly don't put much stock in PS2 backwards compatibility anymore. Granted, the machine should be able to successfully emulate most all PS1 games – which remains a minor bonus – but those with large PS2 libraries might be quite disappointed. So if you want that b/c and the other features, we strongly advise all you European gamers to pick up a 60GB PS3, before the SKU is completely exhausted and the 40GB model takes over.
Here is Sony's official statement on the matter:
"The 40GB machine represents all the power and potential of PlayStation 3 at a very compelling price.
Whilst the feature set of the 40GB is a result of extensive feedback and research, all the 'missing' features should some consumers require them are easily upgraded with USB memory card readers, USB hubs, or bigger external USB or internal HDs.
‘The only functionality that is being removed is backwards compatibility – and this is because we believe this less important now than when we launched – as there will be 65 PS3 games available by Christmas.
Furthermore we believe we should now be devoting our resources to the future of PlayStation gaming and delivering next generation experiences."