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.
For those keeping track, if true, this would be the third version of the PS3 to cease production. 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.