double post.

 The 80 Gig for USa was also a Rumor.
The 40 Gig for Europe was also a Rumor.

I think a lot of people believe that this rumor will come true.

 There also isn't a territory where you can only buy a 40 gb version of the PS3. There will be another version of the PS3 so the "what if" scenario is irrelevant. You asked the following "I mean, have you ever seen a console getting downgraded to a lower-specced model?" Not really explicitly clear on the availibility of a single model, actually it had no reference at all to it.

That's because you didn't read the post I was replying to (and which I quoted by the way). That post was specifically asking "what if this turns out to be the case".

You have to read things in the context they're said.

It's confusing the hell out of me, I know that. They're scrambling, man. They're trying to make something happen. Sony INTRODUCED integrated built-in backwards compatibility to the business with the Playstation 2 in 2000. This is why the Game Boy Advance of 2001 plays old Game Boy and Game Boy Color games. This is why DS of 2004/2005 plays old Game Boy Advance games. This is why Wii of 2006 plays old Gamecube games.

Sony made built-in backwards compatibility an industry standard, a great one I might add. To see them in this kind of confusion is troubling. Because all these different units will find themselves in other regions eventually. The internet made the world more connected. You can't do this kind of thing. They're cannibalizing their own sales and thinking that hard drive size configurations are the key to boosting sales when it is really lack of popularly compelling game selections and a ridiculous price that keeps people away.

By doubling from PS2's $300 US to $600 to the PS3 they stopped most of the transfer of old audience to the new machine. Many people are sticking with their PS2's instead or are picking one of the competition's 7th gen offerings 360 or Wii in lieu of that development. PS2 is cannibalizing PS3 and all these changes only make it worse. It was a bad setup from Get-Go and really there's nothing they can really do to reverse this. I'd say it's best to stick with their guns and stay with original setup they had at launch and just try to get the games in. But that's impossible, isn't it, when hardware bases won't allow for sizable enough software bases. Dang.

They're screwed. It's just that simple. But doing all this mess will only screw them quicker. I'd try to slow the pace if I was them. Bundles might be their only option at this point. Not all these spec changes.

John Lucas 

@John lucas

Nobody wants to waste 600 dollars on a video game system no matter how many games it brings!!!!

They needed to reduce the cost. Hopefully they obtain europe again.

This seems to be a move to the middle of the road (from higher end to budget) for console owners. I think that this is probably a good thing, I mean the Cell is the only thing that you really need. I wish that they would include a ethernet cable, for Home and updates but so what? That's a minor issue.

Secondly, this is not an insult to European gamers.  Instead of looking at this as an insult, look at the Wii.  That is priced even cheaper.  What does that say about the European consumer?  

If Sony only offers the 40GB SKU in Europe then I will go along w/ the Wii/Xbox fanboys and say Sony is making a really bad decision.

I see a lot of over-reaction to this. If things are going to go as bad as you people say, then Sony will simply bring back the 60g and bundles.

Im glad your happy I dont think any one is saying the PS3 is a bad machine just wondering how the marketing plan works and whats next.

 I dont know if owning a wii makes me a fan boy. I do want a PS3 for the Blue Ray and Hdef games but I cant afford it. so long may the war between the 360 v ps3 continue because I want to pay less.

 The other problem for me is, I have lots a friends with 360's so do I get it for Xbox live, I have some friends with PS3 but is there enough for online play, Halo, when do I buy a PS3 because Sony keeps on changing the models. and im waiting for more games at the moment anyway