Sony Unveils 40GB PS3, Cuts Prices

The new mid range 40GB PS3 will hit Japanese store shelves on Nov 11, with a price tag of $342.

Besides offering consumers an intermediate console – at a cost between the previous 20 and 60GB models – the 40GB PS3 boasts a new color, “ceramic white,” while the consoles of the past only sold in black.

Sony says it will cut the price of its 20GB PS3 as well, by 10 percent on Oct. 10 -- a drop of $43 dollars. The 60GB console, however, will remain at $470.

Sony's announcement steps up the ongoing battle for video game supremacy. This year Nintendo's Wii system has won avid gamers over with both its highly popular “motion sensing controllers” and a comparably reasonable price tag.

In June, Nintendo squashed the competition reporting to have moved nearly four times as many Wii's than Sony did PS3's and almost doubled the sale of Microsoft's Xbox 360.

As part of its campaign to win over holiday shoppers, Sony is also offering a a DVD copy of Spider-Man 3 with the purchase of any three consoles. Not to be outdone, Microsoft announced Monday that, by the end of this month, it will bundle two games with the Xbox 360.

The new 40 GB, console is said to have some drawbacks. Like the European models, the 40 GB PS3 will have only two USB ports and no multi memory card slots. It also has no backtracking capabilities, meaning PS2 games won't be compatible.

Sony announced the release of the console in Japan, Europe, Australia and parts of Africa and Asia, but does not plan, it appears, to supply it to the U.S. An 80GB console to be sold at $599, however, is planned for release in August.