Sony Computer Entertainment America has finally confirmed the new 40GB PlayStation 3 for the US, and plans to release it on November 2 for USD 400.
The move follows hot on the heels of GamesIndustry's report on the situation earlier in the week, and will coincide with a 17 per cent price cut for the existing 80GB unit, which drops from USD 600 down to USD 500.
The announcement was made by SCEA president Jack Tretton and reported by Reuters, and follows similar strategies already revealed in Europe and Japan.
The new 40GB unit drops backwards compatibility with PS2 titles, something Tretton justified by calling it a "secondary consideration", believing the PlayStation 3 should now focus on its own catalogue.
Last week saw the third highest sales week for the PlayStation 3 in the UK since launch, after the 40GB model and accompanying price cut for the 60GB unit entered the market.
It also prompted a boost in PS3 titles across the all formats chart, with many old faces re-entering in strong positions.