198w ago - According to the UK news site Telegraph (linked above), the PS3 Slim console that is expected to be announced at GamesCom during Sony's 3-hour press conference is reportedly to come in two versions- a 40GB and an 80GB model.

To quote: "An official PlayStation announcement could come later this month at the GamesCom video games show in Cologne, Germany, with the console itself in stores in time for the lucrative Christmas shopping season.

The new console, dubbed the PS3 Slim, is expected to cost less than the current generation of PlayStation 3 consoles, which start at around £300 for the 40GB version.

The Slim is likely to come in two models, one with a 40GB hard drive, another with an 80GB hard drive, with prices expected to start at around £260."

225w ago - Today D3M0N2009 shared a video from earlier this month courtesy of sonyk0 via YouTube.

The video from DemonHades demonstrates that PS3 40GB Service Mode consoles can actually play PS2 games, but the feature isn't unlocked for the retail counterparts to date.

As most suspect, Sony has been working on a PS2 software emulator for quite some time (since Firmware 2.5x), so the question is really when and how they will introduce it publically.. perhaps via PSN Store PS2 title updates, or just include it in a Firmware update, etc.

Those interested can check out the video below, enjoy!

242w ago - A leaked Blockbuster memo has revealed that Sony is permanently dropping the price of the discontinued 40GB PS3 as of Sunday.

The price of the 40GB will now be $360, while a bundle including a HDMI cable, Spiderman Movie, and Tansformers game will be available for $400.

To quote: According to a Blockbusters' memo leaked to us today Sony is permanently dropping the price of the discontinued 40GB model of the Playstation 3 starting Sunday.

The price drop, which was verified by calls to a number of Blockbuster stores, will drop the 40GB model to $360 and an PS3 40GB bundle with an HDMI cable, Spiderman the movie and Transformers the game to $400.

Stores that have trade-ins of the PS3 40GB will be selling it for $360 as well.

253w ago - Sony Computer Entertainment America CEO Jack Tretton announced today that the price point of the 80GB PS3 model will permanently drop to $400 dollars this September, replacing the current 40GB pack.

Tretton stressed that the new 80GB Core Pack will become Sony's primary PS3 model, offering "all of the same features and functionality" of the 40GB.

Does that mean no backwards compatibility with PS2 games?

To quote: No new SKU was announced, and the 40 GB SKU will be phased out, so it seems that Sony is likely moving back to a one-version console market. Unfortunately, the company did not make any comment on backwards compatibility, which is a key concern for buyers.

254w ago - Update: Adjusted for the possibility that "replaced" could mean basic changes to 40GB model, like the addition of DualShock 3.

A Wal-Mart spreadsheet allegedly listing products that the company is having difficulty stocking states that the 40GB PS3 "will be replaced with [a] new model in early August."

We received this sheet from an employee that's sent us solid information in the past though s/he can't confirm the origin of the note that the model will be replaced. Of course, in the eternal battle over semantics, "replaced" could simply mean some minor tweaks to the model and the addition of the DualShock 3.

For those keeping track, if the 40GB version actually ceases production it would be the third version of the PS3 to do so. Let's take a trip down memory lane: The 60GB PS3 was last seen in late 2007 roaming the plains of retail (some still speak of finding them in random places today) and the 20GB was officially declared dead in early 2007 after it went missing from retail for months.

Perhaps next week's E3 will shed some light on the fate of the 40GB unit.