Reuters brings word that Sony has officially announced the 40GB Playstation 3 for North America, with the new SKU going on sale November 2. The 40GB PS3 will cost $400 USD and, as in Japan and Europe, will no longer feature backwards compatibility.

Also announced the 80gb PS3 will now cost $500 USD bringing in down 100 bucks

Sony Computer Entertainment of America president Jack Tretton tells Reuters that hope to continue focusing on th strong PS2 software market, with the PS2 alone. Backwards compatibility is a “secondary consideration” and not a “number-one priority” for the Playstation 3 at least not anymore.