Ok, this is now getting sad. With Sony just denying the "Big Bang" announcement, the on again, off again, 40GB PS3 rumor is back on. Big time, according to an "exclusive" over at Pocket-lint. According to their "multiple sources," Sony will announce the 40GB "core" PS3 tomorrow at a price of £299 -- the same model we expect to hit the US for $399. Also expected is a £56 price reduction on the UK's 60GB PS3 making it £369 in time for the holidays -- those Sony "value pack" bundles will see the axe. The 40GB PS3 is expected to feature WiFi, Blu-ray, and SIXAXIS controller but will lose 2x USB slots, the memory card reader, and backward compatibility chip -- not a loss for European gamers whose compatibility is ensured via software. All the changes are expected this month if the rumor holds up. Tomorrow, it's only a day away.

Update: A report from France's Les Echos seems to back Pocket-lint's claim: a €399 40GB PS3 in time for Christmas. A Sony spokesman would not confirm details but did say that an announcement was "imminent."

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One hour later: 40GB PS3 rumor returns, announced tomorrow?