The new model, said to be one-third smaller, will sell at $299 USD and 299 euros. The included internal hard disc drive will be 120GB in capacity, and the system is billed as having the same functionality as the hardware currently in stores--meaning that you shouldn't expect backwards compatibility with PlayStation 2 games.

A price cut has gone into immediate effect for the PlayStation 3 hardware already on store shelves, with the existing 80GB model now at $299 (was $399) and the version that includes a 160GB hard drive now going for $399 (previously $499).

Curiously, Sony noted that the new revision will omit the "Install Other OS" feature of past PlayStation 3 models, with the company explaining that "the new PS3 system will focus on delivering games and other entertainment content, and users will not be able to install other Operating Systems to the new PS3 system."