According to several retail chains, Sony plans on shipping the 40GB PS3 to the US in November.
The 40GB PS3 retails for around $400, which is $200 cheaper than the 80GB model. (I guess you could look at that as a price cut?) The 60GB model, which was discontinued, sells for $500.
There are a couple of minor differences in the 40GB model, such as:
Not backwards compatible with the Play Station or PS2
