Sony announces $500 160GB PS3

Glad I've held off so far, as $500 for a 160GB console sounds more reasonable than their previous price points. But will it be backwards compatible...? From BBC News:

A 160 GB PS3 was unveiled at the Leipzig games conference that will go on sale on 31 October in Europe and November in the US.

[...] The new 160 GB PS3 will be sold as a bundle that includes a limited edition of Uncharted: Drake's Fortune, and will go on sale 31 October for 449 euros (£355), and shortly thereafter in the US for $500.