Update: Reuters is reporting that the 40 GB PS3 will go on sale on Nov. 2 for $400 and that the 80 GB PS3 (with backwards compatibility) will drop in price to $500.
According to GamingBits.com, who got a scan from Target, the 40 GB PS3 will debut in the US for $399.99 on October 28. Read.
If you're not one who keeps up on this sort of thing, the 40 GB PS3 lacks backwards compatibility with PS2 games, but is aggressively priced to compete with the Xbox 360 this holiday season.
In related news the 40 GB PS3, which has already hit Europe, isn't selling very well because the 60 GB is priced too closely to the 40 GB, has backwards compatibility, and comes with two games. Read.
Granted, the 60 GB PS3 is being phased out, so people are getting it while they can.
Back here in the states, the 60 GB PS3 is also being phased out, to be replaced by an 80 GB version, and of course, the 40 GB version. The 80 GB version was set to be $599, however, I've been seeing some rumors of it being $499.
If that were true, that means that Sony would be going into the holidays with a compelling price structure of $399 and $499.
If all of this is hard to follow, Sony will be handing out score cards.