Sony will this week release a slimmed-down version of its PlayStation 3 video game console. The new model, which will go on sale for $699.95, has a 40GB hard drive and includes the ability to access the internet wirelessly. However, it has only two USB 2.0 ports rather than four, and no longer includes the multi memory card port. However, the new version will not be backwards compatible, meaning it will not play PlayStation 2 titles. The PlayStation 3, which also functions as a Blu-ray player, could mean that standalone Blu-ray player price cuts are on the horizon.