40GB console bundled with Spider-Man 3 for $399

Sony Computer Entertainment America (SCEA) has confirmed plans to introduce a 40GB PlayStation 3 console in a bid to lift flagging sales in the US.

The firm also revealed plans to slash the price of its 80GB PS3 model in North America by $100, knocking it down to $499.

The 40GB unit will be available from 2 November and will come bundled with Spider-Man 3 on Blu-ray disc at a suggested retail price of $399.

"Every PS3 comes with a Blu-ray drive, HDMI output, an integrated Wi-Fi connection, Cell Broadband Engine and a built-in hard drive," said Jack Tretton, president and chief executive at SCEA.

"This holiday season we will be able to offer attractive retail pricing with a broad portfolio of outstanding games including Ratchet & Clank Future: Tools of Destruction, The Eye of Judgement, Uncharted: Drake's Fortune, Heavenly Sword, Call of Duty 4: Modern Warfare, Assassin's Creed, Haze and RockBand."

However, the 40GB version will not play PlayStation 2 titles. Users looking for backwards compatibility will have to settle for the limited PlayStation 2 backwards compatibility of the 80GB PS3.