So did my "smaller size" prediction fail? EDIT - Yes it did, I just checked and the dimensions are exactly the same.

That makes me think, WHY removing 2 usb ports, if not to reduce the size of the motherboard? How much do you think they can save with that? 2 or 3 dollars per unit?

Now I know that BC can be a problem for some people, but thinking about it for a minute...it's a very smart move by Sony.  Look at the following from IGN:

After weeks of speculation Sony has officially unveiled the lower-spec 40GB PlayStation 3 and has announced that it's heading to the UK on October 10 at the cut-down cost of 299 GBP. What's more, Sony is also slashing the cost of the 60GB PS3 down to 349 GBP.

The lower capacity hard drive aside, the entry level 40GB PS3 only has two USB ports (compared to the usual four), the multi-memory card port has been removed and the machine will not be backwards compatible with PlayStation 2 titles, because Sony reckons there has been "reduced emphasis placed on this feature amongst later purchasers of PS3".

In addition to the new model, Sony is replacing the existing Starter Pack with a new Value Pack, priced 349 GBP, for which you get a 60GB PS3, a SIXAXIS controller and two first-party titles - although exactly what games will be on offer has yet to be confirmed.

So basically, if you want a cheap PS3, you can get one for £299.  Sony is replacing the Starter pack, which currently retails for £425 (although you can pick them up for £399) with a Value pack which will contain 2 games and only one SIXAXIS....but for £349.

So for £299 you get a 40Gb BC-less PS3 but cheap or for £50 more you get 2 games (probably Resistance & Motorstorm) plus the proper 60Gb machine that does play PS2 games.

I also expect the £299 40Gb model to go for slightly cheaper as well or even come with a free game or Blu-Ray Disc. 

£280 for a blu - ray player, nice :D

 correction £299 i guess we get screwed for £19 then

I think its really stupid to drop the BC as PS2 games are selling "still" amazing well and there are even developers still creating PS2 games. When buying this pack you're forced to buy a PS2 or else the 60GB version.

I wonder how long the BC in general will continue to be supported on the PS3. Wouldn't it be just like that, on a certain day you update your PS3 and "poof" the entire BC is gone? Or is that just a silly ghost story?

OH WOW

no BC

wake up people

I HAVN@T played Ps2 game since 6 months on my Ps3, n that was to check if they worked...lol

I could maybe get my Auntie to get 20% of the asking price as well...so either:

40Gb PS3 for £240 or
60Gb Value Pack (2 games) for £280

Now can I talk my Wife into getting it????

If Sony doesn't bring this to Americs thst will be one of their stupiedest moves yet.

Well you're in a very small minority, the best time to get into any previous-gen is at the beginning of a new gen. There are going to be alot of new buyers out there who would like the option to easily and cheaply buy games from the previous generation to play on a new console. Sony have instantly just forced them to either buy a higher priced model, or a PS2.

Not everybody likes to have a tonne of consoles taking up their living space.

First, I am so happy they finally announced a 40GB one. Hope it comes out in the states for the rumored $400. I'd buy it the. Second, why does everyone care about BC. There are over a hundred million PS2's out there. In fact, I'm going to assume that everyone that has posted in this thread has one. And by this point, if you haven't bought one, you aren't going to cuz it's been out for seven years and at this point the graphics and the system are just too dated so whats all the problem with the no BC? Don't you buy a next gen system to play next gen games. If you want to play PS2 games, go get one off of ebay for eighty bucks or buy a PS2 because there's no reason to get a PS3 to play PS2 games.

If you check the exchange on these things dtewi the European's are still paying 60-100 dollars more for a 40GB PS3 than Americans are for a 60GB with BC its a price cut for them but in term of the dollars they were paying I think 800 to begin with for the 60GB.