The ongoing drama that is the PlayStation 3 just took another dramatic twist, this time in the form of a 40 GB variant and price cuts. I'll start you off slow. The current 80 GB PS3 will be receiving a $100 price cut immediately, making the sticker price $500. (Think there will be an uproar from early adopters?)
The next bigger tidbit of news is the newly introduced 40 GB PS3 that will be available November 2 for $400. There is a gigantic catch with this model. The smaller hard drive isn't the only change; this 40 GB model also lost the backwards compatibility that the 80 GB model includes. All of those old PlayStation games that you enjoy playing every once in a while will not work on the new 40 GB PS3. Sony says this is because those who really want to play PS2 games will play them on their PS2. Come on Sony! It is simply out of convenience!
I guess it is just console baby steps, for the time being.