The long rumoured 40gb Playstation 3 has finally been revealed. Sony Computer Entertainment UK today announced that the 40gb entry level machine will be available from October 10th for £299. The existing starter pack model which sells for £425 will be replaced by a new 60GB starter pack for £349. It should also be noted that this new model does not feature any backwards compatibility with PS2 titles and has also lost 2 USB ports together with the multi-memory card slot.

"As we approach our very first PlayStation Christmas, it is satisfying to be able to offer UK consumers the choice of two PlayStation 3 packages both now representing remarkable value," commented Ray Maguire, managing director of SCEUK, "We have a brand new 40GB machine that represents an excellent entry point into the world of High Definition games and movies, and we have the fully featured 60GB machine being offered with two next generation gaming experiences at a highly competitive price."

"The introduction of the new PS3 has been the result of extensive research into the entertainment needs and preferences of the next generation of PS3 owners," said David Reeves, President of SCEE. "It has allowed us to deliver an extremely advanced, yet highly affordable High Definition entertainment system, configured to the needs of the next generation of European PS3 owners. PS3 has always been the device of choice for the discerning gamer and entertainment seeker, and the new PS3 is more than ever the perfect High Definition entertainment system.

Whilst this is a much need move in the right direction, the price is still too high for my liking, At £300 it's still the equivalent of $600, a huge amount more than the equivalent machine in the USA. Sony, you must do better than this if you don't want to alienate your European fan base.