The Wall Street Journal is reporting that Sony will announce their 40GB PS3 today for $399. Right, the same PS2 incompatible, 2x USB port model already announced for the rest of the gaming world. That's $50 more than Microsoft's Xbox 360 (with 20GB disk) and $150 more than the Wii. Still no date, or official press release from Sony but that should be rectified on the quick as the US wakes up to a retrenched, domestic console war.

Update: It's official! This from Reuters: the 40GB model will be on sale November 2nd and the 80GB model will be reduced to $500.

Update 2: Sony's press release is now out.