Sony has officially announced the release of the 40GB PlayStation 3 model. The new model will be available from October 10th and will retail for GBP 299. In addition, the current 60GB Starter Pack will be reduced to GBP 349. Apart from the smaller hard drive, the 40GB PS3 model will have a number of other modifications.
The 40GB model will come with only two USB ports and will not come with Memory Card slots. Also, the new model will not be backwards compatible with PlayStation 2 titles. The 60GB Starter Pack will continue to have backwards compatibility and will come a SIXAXIS controller and two PS3 titles.
UPDATE:
Following the announcement of the 40GB PS3 model, SCE Australia has stated that the 40GB model will be available in Australia from October 11th, retailing for AUS 699. The specifications for the 40GB model are same as above.