Sony has announced that it will be cutting the price of the 80GB PS3 in the US to $400 come September.

Speaking at E3, Sony said that the new model would have the "current functionality" of the 40GB, which we take to mean that we can say goodbye to backward compatibility and all our old PS2 games. Sad times.

Of course, on the plus side, American gamers now have the choice between an 80GB PS3 or a 60GB 360 with Xbox LIVE membership for the same price which should spice up the ongoing sales war between the two.

But could this be the end of backwards functionality for the PS3? Cling onto your original 80GB for dear life if you have one, it could soon become a very coveted bit of kit.

As for UK gamers, still no word on if we'll ever see such a machine - backwards compatible or not. We'll just have to stick to our 60GB for now.