The new 40GB version of the PS3 will not be able to play existing PS2 game titles.
Sony recently announced price cuts and a new 40GB model of the PlayStation 3 for European markets. Today, the company revealed a plan to extend that same offer to U.S. gamers as well.
The sad part? The 40GB model will be exactly the same, meaning fewer USB ports and it won’t play any of your PS2 games. The new model will run $399; it’s also bundled with “Spider-Man 3” on Blu-ray, says Wired.
For an extra $100, you can get the good old PS3 with plenty of ports and the 80GB drive. Sony was smart to lower that price, just in time for holiday shopping.

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Yeah, it’s a crying shame they cut out backwards compatibility on this model, because they did such a nice job with the ‘upscaling’ of PS2 games on the PS3. PS2 games look a lot nicer on a PS3 than on a PS2. Plus, y’know, one less set of cables.
Hopefully most people will spring for the extra $100 and get the 80 gig version, or even grab one of the 60 giggers still floating around.