Sony just announced at E3 that it's cutting the price of the 80GB PS3 to $400 in September, and that the new model will have the "current functionality" of the 40GB PS3. So it's really more like the 40GB PS3 is getting a capacity bump, since we're taking that to mean backwards compatibility is going out the window. That also means that the 80GB PS3 now costs the same as a 60GB 360 and an Xbox Live membership, which should make the decision a little harder for some people. We're also wondering if that's the end of the line for PS3 backwards compatibility entirely -- we have a feeling launch consoles are about to get a little more precious.

Severed USB cable is really a 2GB flash drive