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Sony has confirmed rumors of a 40GB Playstation-3 being released in the UK. It will be available for £299. The 40Gig Playstation 3 will not be backwards compatible with any PS-2 games. The 40GB Playstation 3 is being considered an entry level console to the PS3 gaming revolution.

Sony recently dropped the price of the 60GB version of the Playstation-3 to GBP 299. The repositioned prices will come into effect on October 10, with the new 60GB “value pack” including two first-party games for the GBP 349 asking price, along with a single controller.

Quote from Sony:
“We have a brand new 40 GB machine that represents an excellent entry point into the world of high definition games and movies, and we have the fully featured 60GB machine being offered with two next-generation gaming experiences at a highly competitive price.”