Source IGN

US, October 16, 2007 - Just a few weeks ago we reported on rumors of the upcoming launch of a new, 40-GB model of the PlayStation 3 designed to compete this holiday season at a $400 price point. It was the FCC that originally let the cat out of the bag when it made public the documentation of its approval of a new PS3 SKU, but now Target seems to be providing all but an official announcement from Sony. GamingBits has secured a collection of pics of in-store bar-code scanners that list both price and show a clear 40-GB model designation. According to the blog, the UPC codes also match up perfectly, so the confirmation is a done deal.

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Well, it looks sony is trying to compete with MS and Nintendo this christmass in the U.S. also, but I doubt they will be able to outsell one of both, but hell, the $399 version is comming to the U.S. should help to be not crushed by the competition. 

There was never any doubt about the 40 GB model being launched after this:

http://www.upcdatabase.com/item.asp?upc=711719800606

Realistically speaking the $400 SKU will do little to help the PS3 this holiday season ...

The PS3's biggest problem is lack of quality exclusive games being that most of the games that were announced for this holiday season as exclusives (possibly over a hear ago) have either been delayed or become multiplatform games; the remaining line-up will probably be outsold by both Halo 3 and Super Mario Galaxy. Being that the competition is less expensive, has better bundles and a stronger game line-up the appropriate term will be "Crushed".

We will see Happy. If the PS3 can go only 1.5:1 or less against the 360 i wouldn't say they will be or you can call it crushed.

80gb 500$
40gb 400$

60gb ???????????

 Except "XBox 360" does not have the word Playstation in it.  Brand recognition and brand loyalty goes a lot further than you'd think.  Most of the people that buy systems are fairly uneducated about games in general.  They don't read this forum.  They don't look at Metacritic for help with their purchases.  They buy things that are familiar to them.  I'm not talking out of my ass either, I know this first hand.

 A few months ago all of the MS fans were saying "PS3 is failing because of its price point".  Now that it is less of an issue, you're saying something else.

The 40GB PS3 will come out in the US and that is a fact. The only questions are 10/28 or 11/2 and black and white or just white. Expect PS3 US sales to be between 400 and 600k in november and 1.2 to 1.5m in december. The price drop will be perfectly timed with either date as Stranglehold, GH3, Ratchet, and The Simpsons game are all luanching that week for the system. Plus Spiderman 3 is coming to Blu-ray on the 30th and it is going to be heavily pushed. I expect Sony to dual market Spiderman 3 Blu-ray + PS3 399.99 like no other.

It was inevitable the 40GB would be released in the US. I wonder what sort of impact it will have?

@HappySqurriel- Price cuts have done wonders for Sony in the past, take a look at this weeks PS3 sales in Others. It's all about building momentum before Xmas, and the 40GB will certainly help.

The 40 gig will do quite well in NA, no doubt about it.

I agree, the 40GB will get some of those users that held off on the PS3 until now that it is $400. The only drawback is that it does not contain BC...So they are out of look or are forced to get the 60GB or 80GB.