First Sony had two PS3 models, then that increased to three, then two again. That obviously created a lot of confusion. One of the big problems was that each SKU had different features than the others, which is believed to have caused confusion among less tech savy consumers. Back in Novermber 2007, Sony released the 40gb model to much acclaim. The newer model cut costs by removing the memory card reader, two USB ports, and total PS2 backwards compatability. Sony is now releasing a new SKU, sort of. The 40gb will receive a hard drive upgrade doubling it's storage capacity to 80gb. This will repalce the current 80gb Metal Gear Solid bundle, which has all features the original 40gb was missing. Given that more and more PS3 games are requiring hard drive installs, doubling storage space was a logical route. The new model will sell at the $399 price point, same as the old 40gb.

Some gamers are expressing concern about what will happen to the current 80gb bundle. It retained the memory card reader, four USB ports, and SACD support from the previous models as well as software driven PS2 backwards compatability. A lot of PS3 owners, including myself, like to play PS2 games. The advantage of course is having the wireless controller and upscaling for display on HDTVs. Based on what I've read though, Sony never indicated that the current 80gb model will be discontinued. It is possible it will remain as a "premium" version or it too could receive a hard drive update, such as the much rumored 120gb/160gb storage boost.

Source: PSU