sinister rouge writes "The BBC has a story confirming a cut price PlayStation 3 with a 40GB hard drive and no backwards compatibility with previous consoles. The console is set to go on sale later this month in Europe, the Middle East, Australia, and New Zealand. No word yet on that particular SKU for the North American market. '[Ray Maguire, head of PlayStation UK,] said: "The people who want to get into new technology early are prepared to pay a premium. We want to get the console to the next level; we have re-engineered the machine to bring the price down. We have invested a lot of money in reaching this price point." Sony is still losing money on each console sold, said Mr Maguire, but would lose less money on the 40GB machine. "We are in an investment phase," he said.'"
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