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I hope they will remove BC to lower the price even more - >40 gb sku for $349, 160 gb sku for $449 and PS2 for $99 would work nice. Definitely they shouldn't introduce new model for Europe. 40 gb sku works great here and it's the cheapest for them to produce.
 
With every passing month BC means less and less. Seriously the last big PS2 game was released back in March 2007 (GoWII).