Big News from Sony at E3

Sony announced it was introducing a new PlayStation 3 model with a built-in 80 GB hard drive for $399, replacing Sony's current 80GB PS3 which retails at $499.

The new 80GB model essentially doubles the storage capacity of Sony's currently offered 40GB PS3 model, which is also priced at $399.

The new 80GB PS3 will start shipping in September, according to a statement on Sony's Web site. The new 80GB PS3 will also include integrated Wi-Fi and a built-in Blu-ray player, but like the old 40 GB model it will not be backwards compatible with PlayStation 2 games. The 40GB version of the PS3 will eventually be phased out, Reuters reported.