The 40GB model is retailing at £299.99, whereas you can now pick up the 60GB model for £349.99.The 40GB version doesn't have PS2 backwards compatibility, but it will play PSOne games and at £299.99 it's one of the cheapest Blu-Ray players on the market; it's also not a bad game's console by most accounts.
Incidentally, £299.99 is the same price as the Xbox 360 Elite, which has a 120GB hard drive.Blu-Ray? 40GB, 60GB or 120GB? Resistance Fall of Man or Halo 3? Xbox live or PSN? There's a lot to think about. The choice is yours folks.
We could just stuff both of them and pick up a Wii instead..eh? Well, the games are going to get cheaper.