Sony Computer Entertainment Europe (SCEE) has said it will kill off the 60GB PlayStation 3 model in Europe. Nick Sharples, director of corporate communications at SCEE, made the shock announcement in an interview with Kotaku.

"The 60GB Starter pack will remain on sale until stocks run out [in a number of months, depending on territory], Thereafter, the 40GB model will be the only SKU [Stock Keeping Unit] in the SCEE region," he said.

Yet another Sony PS3 to launch?

So what exactly does this mean for the PS3 line? Well if the new 40GB PS3 is to be the only one on sale in Europe, then you'll no longer be able to play your old PSOne and PS2 games, since the 40GB PS3 is not backwardly compatible.

However SCEE may eventually replace the 60GB PS3 with an 80GB version, just as it has done in the USA and some parts of Asia. The 80GB PS3 restores backwards-compatibility.

We've asked SCEE for confirmation of this matter, so we'll bring you more news as we get it.