Sony will introduce a cheaper Playstation 3 in the United States as it battles rival consoles from Microsoft and Nintendo.
The new version of the PS3 will come with a 40-gigabyte hard drive, cost $400, and go on sale on November 2nd.
The company has also cut the price of its highest-capacity model by about 17 per cent. The price of the 80-gigabyte version will be cut to $500 from $600.
The 40-gigabyte model has already hit the market in Europe and Japan, and was expected to come to the United States ahead of the year-end shopping season that accounts for the largest chunk of annual video software and hardware sales.