Sony drops 20GB PS3 in North America.

[LordTheNightKnight]

DKII said:

The 20 GB still exists in Japan probably because Sony needs to maintain the idea of having the lower price point, since the 360 is a non-factor there. In NA/EU, 360 acts almost like a price bridge from Wii to PS3, but in Japan it's a direct comparison since you pretty much see only Wii or PS3.

Although a lot of JRPG developers seem to love the 360. That keeps up long enough, the 360 will break the Japanese mainstream soon. And it would jelp Sony, as keeping the 20GB at a lower price than it is here is losing them even more.