Update: The PlayStation 3 Slim doesn’t play PS2 games. “Note: This product is not compatible with PlayStation 2 games,” reads the release.

Original: Kaz Hirai, head of all things PlayStation, announced today, during GamesCon, that the long rumored and awaited PlayStation 3 Slim will be available in the first week of September. Hirai detailed the system stating that the system will feature a 120 GB drive. Along with that, he said that it will be 33 percent smaller, 36 percent lighter then the current PlayStation 3.

The PlayStation 3 Slim will be priced at $299 in the U.S., 299 euros, 29980 yen. Sony also announced at their GamesCom conference that it will add e-reader technology to its PSP handheld devices, introducing digital comics from Marvel and other publishers. The e-reader technology PSPs will release in December.

SEC chairman Kaz Hirai said in an recent interview that he believes that the PlayStation 3 will outsell the Xbox 360 by the end this generation.

“Unless things go really bad,” Hirai told OPM. “There’s no way that at the end of a life cycle our competition is going to have a higher install base.”

“With the Xbox – again, I can’t come up with one word to fit. You need a word that describes something that lacks longevity,” said Hirai.

“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math.”

The Sony executive says that regardless of install base he’d “like to think that Sony would continue official leadership in this industry.”

M.A.G was first reveled at E3 2008 as of now the game is on fully on track coming from the people at Zipper Interactive and Sony Computer Entertainment. M.A.G will be playable with an amazing 256 players online. In case you did not know Zipper Interactive were the people behind the tactical third-person shooter SOCOM: U.S. Navy SEALS so you can rest knowing that this very promising game is in good hands.