As Pocket-lint confirmed last week, Sony has announced a Slim version of the PS3 at its press conference at GamesCon in Germany.
The new console dubbed the PS3 will come with a 120GB hard drive and be 32% smaller than the current model.
PlayStation boss Kaz Hirai also said the PS3 Slim is 30 percent lighter and uses 34 percent less power than the current console.
It will cost $299 in the US and €299 in Europe giving it a UK street price of around £255.
The new console is expected to be available in the US and UK at the beginning of the month with a price drop also planned for the current versions left in the market.