Foster City, Calif. - Sony Computer Entertainment America on Thursday cut $100 off the price of its 80GB PlayStation 3 in the U.S., which will now sell for $499, and also said it will begin selling the new 40GB model for $399, beginning Nov. 2.

The 40GB model will come bundled with a copy of "Spider-Man 3" on Blu-ray Disc, but will no longer support legacy PlayStation 2 games.

Separately, Sony said it plans to sell the facilities it uses to manufacture the Cell processor and RSX graphics chip found in the PlayStation 3 to fellow Japanese electronics firm Toshiba.

While financial deals have not been disclosed, Reuters cited sources familiar with the transaction who expect Toshiba to pay over $850 million.

Sony also announced it will work with IBM to develop the next-generation Cell chip; Toshiba will also collaborate with Sony on development of the next-generation of Cell and RSX chips.

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http://tinyurl.com/2bnsju (Reuters)

http://www.sony.net/SonyInfo/News/Press/200710/07-1018E/index.html

http://www.sony.net/SonyInfo/News/Press/200710/07-1018BE/index.html