Cheaper 40Gb PS3 on the way

Sony is widely tipped to shortly unveil a 40Gb PS3 console which will retail at $399 in the US, and under the psychological £300 barrier in the UK.

The plans are based on Sony registering a new system with the Federal Communications Committee (FCC) in the States and a story suggesting that Best Buy, the major American retailer, has already been informed of the decision.

Christmas 2007 will be the first major holiday season in which Microsoft and Sony will compete with their next generation consoles.  Although many gamers know the PS3 is by far the better system, the pricing has helped the XBox 360 maintain a large slice of the console cake.

All eyes on Sony.

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