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superchunk said:
What I don't understand is why it does use the same software emulation as the 80G??? I mean the cost to include that software must be next to nothing. Clearly, it so the 40g is less attractive and people purchase the 80g.

 Actually the 80gb still has half of the physical ps2's chips still inside. while the 40 has had all of the chips removed.   The 80gb is technically partial software emulation