The internet as well as traditional media have been abuzz with the rumored 40GB PS3. Many industry watchers are suggesting that Sony could be announcing the 40GB PS3 sometime next week, in a bid to steal some of Halo 3's street release date.
There are more rumbles in the hardware industry players, with some unamed "electronic manufactuing news source" have revealed that Sony have enlisted FoxConn (Taiwan based company that currently produces the Playstation 2) to produce 40GB PS3. Rumors have even planted the 40GB PS3 with a USD$399.90 price level, but fully expecting other lesser specs (no bluetooth, no card readers, no WiFi?) at that price level.
Personally, although I am taking this rumor with a pinch of salt, there are several advantages for Sony to do so.
1) USD$399 price point is seen by industry player as the ceiling price consumers will buy for electronics goods.
2) At USD$399, it makes the (40GB) PS3 a very cheap blu-ray movie player with HD gaming capabilities, as the cheapest HD-DVD standalone players from rival camp Toshiba will be retailing at USD299.
3) With more total PS3 sold, this will also increase the total numbers of consumers of blu-ray movie discs.
4) With Sony deep entrenched in the blu-ray camp, increasing PS3 and blu-ray consumers makes perfect business sense as they will stand to earn from license of blu-ray players, movie deals (they do own several studios) and they dont want a repeat lost of technology format (remember Sony's betamax videotape lost the format war against JVC's VHS format).
As Sony is eager to win the next gen DVD format, by push more PS3 into homes with a cheaper USD$399 entry level 40GB PS3 makes perfect business sense to me. We will see if this turns out to the truth in the next few weeks.
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