Reuters brings word that Sony has officially announced the 40GB Playstation 3 for North America, with the new SKU going on sale November 2. The 40GB PS3 will cost $400 USD and, as in Japan and Europe, will no longer feature backwards compatibility.

Also announced is a price drop for the 80GB PS3, bringing it down to $500 USD from $600.

Sony Computer Entertainment of America president Jack Tretton tells Reuters that they hope to continue focusing on the strong PS2 software market with the PS2 alone, and that backwards compatibility is a "secondary consideration" and not a "number-one priority" for the Playstation 3 (at least not anymore).

This article was originally published on Joystiq.