A new report says that Sony has turned to PS2 manufacturer FoxConn to produce the long-rumored entry-level 40GB PlayStation 3.

" According to Sky News, an electronic manufacturing news source said that Sony will employ the Taiwanese firm FoxConn, which currently produces PlayStation 2s, to manufacturer the 40GB PS3.
The report suggests that an announcement regarding the long rumored 40GB PS3 could be made this week in order to combat Microsoft’s Halo 3 juggernaut, a possibility also touted by industry analyst Michael Pachter earlier this month.

The report also speculates that the console will retail for $399 and will ship without the USB ports or BACKWARDS COMPATABILITY included in the more expensive 60GB and 80GB models."

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OK I call this

WHY the hell would Sony have to cut the BC out if its just emulated by software in the new PS3s ANYWAY?