$399 PS3 on sale Nov. 2

By Ned Randolph -- Video Business, 10/18/2007

OCT. 18 | Sony Computer Entertainment America confirmed it will introduce a stripped-down, 40GB model of its PlayStation 3 priced at $399 on Nov. 2, as expected, and at the same time dropped the price of the more robust 80GB model to $499.

Both game systems play Blu-ray discs, and Sony said it would bundle all new 40GB PS3 models with the Spider-Man Blu-ray from Sony Pictures Home Entertainment.

"We're pleased to offer the consumer a lower price point without sacrificing the core technology components that make PS3 the most advanced high-definition entertainment system available," said Jack Tretton, president and CEO of Sony Computer Entertainment America. “Every PS3 comes with a Blu-ray drive, HDMI output, an integrated wi-fi connection, Cell Broadband Engine and a built-in hard drive.”

The new models also can play the picture-in-picture feature, with which a separate stream of video plays in a little box over the feature film, company spokesman Patrick Seybold said.

“The core components haven’t changed,” he said. “It still comes with all the core things that make it PS3.”

The cheaper models will have only two USB ports and no longer have integrated memory card slots. Users will have to buy a USB adapter to add memory card functionality, he said.

The smaller, 40GB hard drive will not affect gameplay, Seybold said, only the amount of content users can download from the PlayStation online store and the amount of storage for photos, home movies, etc.

The cheaper PS3 also will no longer play PlayStation 2 titles, the company said, citing its “extensive” availability of PS3-specific titles.

Consumers looking to play their PlayStation 2 games should look to the 80GB PS3, which will have “limited functionality.”