It's official, gang. Sony has announced the long talked about 40GB PlayStation 3 and the all new price-point for the unit. Effective immediately, 80GB PlayStation 3 systems will now retail for $499, meanwhile the all new 40GB PlayStation 3 will arrive on November 2nd with a much more pleasing $399 price-tag and will come bundled with a Blu-Ray of Spider-Man 3, as expected. Prices reflect both the US dollar and Canadian dollar.

"We're pleased to offer the consumer a lower price point without sacrificing the core technology components that make PS3 the most advanced high-definition entertainment system available. Every PS3 comes with a Blu-ray drive, HDMI output, an integrated Wi-Fi connection, Cell Broadband Engine and a built-in hard-drive," said Jack Tretton, President and CEO, SCEA.

"This holiday season we'll be able to offer attractive retail pricing with a broad portfolio of outstanding games including Ratchet & Clank(R) Future: Tools of Destruction(TM), THE EYE OF JUDGMENT(TM), Uncharted: Drake's Fortune(TM), Heavenly Sword(TM), Call of Duty(R) 4: Modern Warfare, Assassin's Creed(TM), Haze(TM) and RockBand(TM)."

Of course the only drawback to the 40GB PlayStation 3 unit is that it will no longer play PlayStation 2 games (but will play almost all PlayStation 1 games). You're most likely one of the 120 million PlayStation 2 owners, so perhaps this doesn't concern you as much. But if it does, you can always opt for the 80GB PS3 which will play your older PS2 titles.

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