According to Game Informer, Sony is planning to release 40GB PlayStation 3 in North America retailing for $399, but will have no backward-compatibility. Game Informer was even waiting for the announcement at E3, but the news wasn’t confirmed at the event. As for the PAL market, Sony has hinted that a 120GB model could be in the pipeline.

SCEE President and CEO David Reeves has said the leap of 20GB from 60GB to 80GB which has occurred in the US is too small a jump in capacity, but doubling the capacity would definately be worth it.

“The difference between 60 and 80GB is very small, we just feel that going up 20GB is not worth it,” Reeves told Norwegian website Dagbladet.
However, “If you go to double it, it’s worth it”, he added. “So maybe you’ll see something a little bit later.”

Two new games are headed to the PlayStation Network, Elefunk and Snakeball. Elefunk is a original pizzle game that will play in much the same way as Lemmings. The aim is to save the elephants by building structures using a range of raw materials. The aim in Snakeball is to glide across the floor swallowing balls as you go and ultimately score more points than your opponent, similar to mobile phone game Snake.

Both the games are originals for the PS3. Elefunk will also include online leaderboard and multiplayer options. Snakeball could be one of the first PS3 games to use the PlayStation Eye to map your face onto the in-game characters, depending on the release date. Check out some screenshots below.

Elefunk

Snakeball

Another Custom Firmwarem 3,51 XR, is in development by pj1115. pj1115 states that the new firmware will be “based loosely on [Dark_AleX’s] OE” and promises that this version will be better than the recent 3.51 M33 Custom Firmware. The firmware is still in development and the developer claims that it is currently undergoing beta testing. We have included a proposed feature list below.

• Fixed compatibility issues with modules and resources. M33 has them.
• Bug fixes.
• Added XR recovery menu.
• Increased theme compatibility.
• Replaced network update with my custom firmware updater.
• Load modules and resources from memory stick.
• Config file on the MS for other configuration (spoof version number, recovery theming, etc.)
• Ability to have all 12 BG images as full-res.

pj1115 is also planning to include:

• Play MP3/WAV/OGG on boot instead of opening sound. No length restriction.
• Boot password protection and integrate an adapted HideMedia.
• Ability to edit config file on MS from recovery and add MAC spoofing (only affects XMB – iDstorage is untouched).
• Add super features such as dump/write NAND image, dump/write iDstorage to recovery.
• Increase no-UMD compatibility.

A team of 10 developers, who wish to remain anonymous, are planning to create a new custom firmware using Sony’s 3.51 firmware. The team plan to reverse engineer Dark_AleX’s Custom Firmwares in order to build a similar version. The team claims that, once finished, their custom firmware will surpass Dark_AleX’s custom firmware versions.

At this point no other information is available, but we will bring you an update on this story as soon as more information is available.

For those of you who have installed the new custom firmware 3.51 M33 may have noticed that homebrew applications that use Wi-Fi were not working correctly. As a result, the M33 Team have made a patch to fix the problems. Apparently, the problem was caused by Sony’s 3.51 wlan.prx code and not by M33 code.

The 3.51 wlan.prx reportedly affected the 1.50 wlan.prx, stopping WLAN-based homebrew from working. As proof of this, they pointed out that the 3.40 wlan.prx did not have the same problem.

[Download 3.51 M33 Wi-Fi Fix]

Homebrewers may have a new hero in the mist. Now that Dark_AleX has left the scene, a new team of coders that goes by the name of M33 have taken over his place and have released their own custom firmware utilizing Sony’s firmware 3.51. All of the firmware’s features have been retained, including the PS1 emulator, high video resolution, and MP3 visualizer. You can launch ISO’s and homebrew directly from the XMB, and also play games that require Firmware 3.51.

Other features include:

• CPU speed modification
• Recovery mode
• Multi-region
• Customize all your icons and more.

Please remember that installing a custom firmware is potentially dangerous and could render your PSP useless if the instructions are not followed correctly. XTREME PSP does not take responsibility for your actions, nor does the developers. Use this at your own risk. Please consult the read me file included in the ZIP file for instructions.

[Download Custom Firmware 3.51 M33]

Thanks to Sable for the tip.

In a recent interview, David Reeves mentioned that the 60GB PS3 model will be discontinued in North America, once stock sells out. This move has now been denied by Dave Karraker, SCEA President. Karraker stated that the quotes obtained in the interview in regards to a 60 gigabyte Playstation 3 phase out was “inaccurate”. The claim was backed up by Sony Canada spokesman Kyle Moffatt.

Karraker told Joystiq that “As announced this week, SCEA’s product offering in North America consists of a 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499. We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future.”

Kaz Hirai however, in a interview, stated that the 60GB PS3 model is no longer in production and will soon be phased out.

Peter Dille, Senior Vice President of Marketing for SCEA, told Gamasutra today that movie download service for PSP and PS3 will be coming very soon, and that the company is actively working on the service. Sony is working hard on the service to ensure that it makes a good impression on consumers when it is launched.

“I think what might convince [people who haven’t picked up a PSP] would be the advent of a service that allows them to put content onto the PSP in an easier fashion,” said Dille. “There’s been a lot of speculation about when we’ll offer our video download service on PSP or PS3, and I think that could be more of a killer application to get people off the fence.”

Dille also said: “We didn’t have any announcements about that at the show, but what I can tell you is we’re working on it, we see that it’s critical, not just for PSP but also for PS3, and it’s something we know is super important to get right. We won’t have a second chance to make a first impression. If we launch it and it’s not right, we’re going to get creamed. So we want to make sure we get the consumer experience right, get the right content, and we’re working really hard on it. And I don’t think we’re talking about years, I think this is something we could get behind really soon.”

[Via: Gamasutra]

Sony has confirmed that they will not be cutting the price of the PlayStation 3 in Europe or releasing a 80GB model – instead it will be offering a Starter Pack containing the console, two games and an extra controller for GBP 425 / EUR 599. The announcement will also affect Australia. SCEE has chosen to bundle first-party titles and a second SIXAXIS controller with a combined RRP of GBP 115, rather than lower the price.

The bundle pack is due on sale in the UK on July 18 and in Europe August 1, the Starter Pack will offer two Sixaxis controllers and a choice of two first-party titles from a list of Resistance: Fall of Man, Motorstorm, Genji: Days of the Blade, Formula One Championship Edition and Ridge Racer 7.

“With sell through of over 1.2 million units in the SCEE territories to date, PlayStation 3 has proved to be an instant and huge success,”
said David Reeves, president of SCEE.

UPDATE (13th July 2007 at 13:55):

With the introduction of the Starer Pack, the PS3 price in the UK will return to £425. Most UK retailers dropped the price of the PS3 to £399 a while back to increase sales, but since the new unit will cost more, it is likely that retailers will increase the price to the original RRP.

SCEE president David Reeves has told GamesIndustry.biz that the 60GB PlayStation 3 will no longer be available in the US after stock sells out – which he predicts will occur by the end of the month. Reeves was speaking at an E3 event to announce the introduction of a new PS3 bundle in Europe. When asked about possible criticisms over whether SCEE should have given consumers the option to pay a lower price, as SCEA has done, he replied, “Well, they’re not really are they, because what the US are offering from the 1st of August is a USD 599 version with one game.

“All they’re doing is taking their stock in trade that they’ve got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July.”

When asked to clarify if this will mean the end of the 60GB model, Reeves answered, “In America, yes.” This blow comes only a few days after the 60GB PS3 was lowered in price, effectively making the price cut void. After stock runs out, the only available model will be the 80GB version retailing at $599, since the 20GB version has already been discontinued.