The Associated Press discusses the impending sense of doom surrounding the Sony PlayStation 3. Sorry, I mean the PS3 price cut and new cheaper model:

Sony Corp. on Thursday cut the price of its PlayStation 3 game console in the U.S. and announced an even cheaper model that will arrive before the holiday shopping season.

The top-line PlayStation model, with an 80 gigabyte hard drive, now costs $499, down from $599. That effectively eliminates the lower-end model, which has a 60-gigabyte drive and has sold for $499.

A new low-end model with a 40-gigabyte drive will go on sale Nov. 2 for $399.

Unlike the other PlayStation 3 models, the new one won't be able to play games made for the PlayStation 2. In a statement, Sony said this was due to a more extensive lineup of games of the PlayStation 3.

Um. What??

Won't be able to play PS2 games? I love that the logic used here is similar to Apple's logic the other day about lowering the price of non-DRM-protected music from $1.29 to $.99: We're doing it because it's so successful.

Anyway, yikes. I can't imagine why anyone would buy a PS3 that doesn't play PS2 games. That's the largest catalog of video games in the console world, by far.

Thanks Jayson.