Storage Space
The most obvious difference between the models is in the title. The 40GB model contains 40 Gigabytes of storage space, while the 80GB obviously has 80. While save data for games usually takes up about 1 MegaByte (1,000 MB = 1 GB), there are other uses for the internal drive that can be more data-consuming. Many programmers design games so they must be installed to the hard drive. Installation can consume up to 5GB of space on the drive.
Backwards Compatibility
The original 80GB PS3, which can be identified by the four USB ports on its front face, is compatible with many PlayStation 1 and 2 titles. The 40GB model lacks the chips required for backwards compatibility. A re-issue of the 80GB model, which only features two USB ports, also does not include backwards compatibility.
Memory Card Support
A hold-over from the PlayStation 1 and 2 era, memory cards are not as necessary when a system has internal storage. The 80GB model of the PS3 does have slots for memory cards, which can still be used to back up game data, or to transport save data and characters between systems and locations. The 40GB model features no support for memory cards.
Other Inputs
The 80GB has inputs for SD and compact flash cards and Sony's proprietary MemoryStick Pro storage media. These can be used to import audio and image files to the system's internal browser. The 40GB model does not include any of these options.
Price
The 40GB PlayStation 3 launched in 2006 at a suggested retail price of $399. It was discontinued in 2008, but used and refurbished models could still be found in 2010 for around $250. The 80GB model carried a $599 price tag at the 2006 launch. This was later dropped to $499, but as of June 2010, the console can be found at a $299 price point from third-party retailers.