The 40GB [tag]PS3[/tag] is pretty much confirmed. Reports from Asia, that mythical land, suggest [tag]Sony[/tag] has gone with Foxconn to manufacture the 40GB entry level PS3. There’s speculation that Sony will have to drop a few odds and ends from the PS3 in order to make the expected $399 price tag. Would you buy a PS3 sans USB ports and/or without backwards compatibility?

An official announcement is expected this week. Keep in mind that “expected” and “will happen” are two totally different concepts.

Sony turns to Taiwanese co to make cheaper 40GB PS3 [Sky News via Next Gen]