Sony Confirms $399 PlayStation 3 for U.S.

A new 40GB model will drop the PS3's price to $399, while the currently available 80GB model will now sell for $499.

After Sony introduced a 40GB PlayStation 3 In Japan last week and slashed prices on the 80GB model, rumors swirled that the same would soon happen in North America. Sony confirmed those rumors on Thursday by announcing that a 40GB version of the PS3 would sell for $399 when it hits U.S. shores on November 2, and also that the price for the 80GB version would drop to $499 immediately.

"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," said Jack Tretton, Sony Computer Entertainment America’s president and CEO, in a statement.

While the 40GB version of the PS3 will be identical to its brothers in most respects, Sony crippled the backwards compatibility found in the original system, meaning owners will no longer be able to play their PS2 games. The more expensive 80GB version will retain this capability.