Sony Computer Entertainment Europe has unveiled a cheaper 60GB PlayStation 3 and confirmed the release of a non-backwards-compatible 40GB model for European territories.

Sony’s been under heavy pressure to bring the price of the PS3 closer to that of its rivals Xbox 360 and the mass-market focused Nintendo Wii.

The company will begin selling the PS3 on October 10 for €399 in SCEE territories. There’s no word yet on a US release.

The 40GB PS3 will only have two USB ports instead of the four provided by existing models. The new model will also be dropping the multi memory card port.

The most striking omission is Sony’s decision to nix all backwards compatibility, both in software and hardware forms. The company said that it made the decision as reflects “both the reduced emphasis placed on this feature amongst later purchasers of PS3, as well as the availability of a more extensive line-up of PS3 specific titles.”

Cost-cutting factors also were undoubtedly in play in the decision.

Other features such as HDMI, Blu-ray support, wireless Sixaxis control, upgradeable firmware and wi-fi are all still included.

The 60GB PS3 Starter Pack, which does feature backwards compatibility, as well as an extra controller and two titles, will be dropping to €499. This package will only remain on sale “as stocks last.” The company added that there would be a "separate in-store promotion on the 60GB PS3" in the UK and Ireland to replace this Starter Pack.

News-Source: http://www.next-gen.biz