The Wall Street Journal confirms that Sony is slashing $100 off the starting price of PS3 in the U.S. by introducing a 40GB model. IDC analyst Billy Pidgeon predicted the move would invigorate PS3 sales this holiday season, though a bigger impact is likely to occur next year when a stronger lineup of titles including Metal Gear Solid 4 will be available for PS3.
The Wall Street Journal website requires subscription. The full article is reposted in the GameTrailers.com PS3 forum. Reuters and other sources are also reporting the new 40GB PS3 model in the U.S. See Alternative Sources below.