That's £100 cheaper than the current 60GB model and at last could be a reason for UK gamers to buy a PS3 without feeling heinously ripped off.
No backwards compatibility?
The rumoured 40GB PS3 has been an industry whisper for a few weeks now. According to some sources, it will not feature backwards compatibility or USB ports on the back, as Sony still wants to give people an incentive to buy the more expensive flagship model.
What's more, Sony could well make an announcement regarding the 40GB console in the next few days. Rumour has it that Taiwanese manufacturer, Foxconn, has been contracted to build the console.
Foxconn already has a partnership with Sony to make the company's super-selling PlayStation 2.
More news as and when we get it.