A leaked Blockbuster memo has emerged which details a price drop starting this Sunday for the now discontinued 40 GB PS3 model. The price drop appears to be only at Blockbuster, not a Sony-initiated price cut.
Kotaku managed to get a copy of the memo, and according to their report, they have confirmed the drop through calls to several Blockbuster stores.
The 40 GB model will sell for $360 while the 40GB bundle (including an HDMI cable, Spider-Man and Transformers the game) will be cut to $400.
On the other hand, you should be note that for $40 more you can get an 80 GB PS3, which would seem to be a better value.