Sony officially announces the rumored 40GB Sony PS3 console for Europe launching next week on October 10th at the new low price of €399. (Price would be $399 if it launches in U.S.)

There are few differences between the 40GB PS3 and the 60GB PS3. One big difference is that the new PS3 is no longer backwards compatible with PS2 games.

“The introduction of the new PS3 has been the result of extensive research into the entertainment needs and preferences of the next generation of PS3 owners,” said David Reeves, President of SCEE. “It has allowed us to deliver an extremely advanced, yet incredibly affordable High Definition gaming and entertainment system, configured to the needs of the next generation of European PS3 owners. PS3 has always been the device of choice for the discerning gamer and entertainment seeker, and the new PS3 is more than ever the perfect High Definition entertainment system."

The 60GB PS3 will now be selling for 499 Euro as long there is stock available. See Amazon UK. (*In the UK and Ireland, the Starter Pack will be replaced by a separate in-store promotion on the 60GB PS3.)

Besides in Europe the 40GB Sony PS3 also will launch in Middle East, Africa and Australasia.
See also the Reuters coverage.