Clearly changing their minds of what is now considered a given on any new system, Sony has announced today that the new 40 GB model of the PS3 will not have any form of backwards compatibility, even software which was hinted at earlier. Sony went on record stating that they would rather put the money towards making new games.
No statement on how this will affect the 80 gig model that is already “released” in some areas and was supposed to support the same software feature.