Sony has taken the opportunity to announce price cuts on its 80GB PS3. A price of $399 - which is in 60GB Xbox 360 territory - will soon come into effect.

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.