Sony has announced that a demo of the PS3 version of Modnation Racers is now available to download from the PlayStation Store. The 1001MB file is available in both North America and Europe ahead of the game’s release this week.

The full PSP version of the game is also available to download and carries a surprisingly low price. Those in the UK can purchase it for just £16.99 – a full £8.00 cheaper than the asking price for the UMD version at GAME.

It’s not all good news though, as Sony is clearly looking to capitalise on used game sales. A download named “Online Entitlement” is also available, with instructions to “download only if the in-pack Online Entitlement Voucher is missing, or is no longer valid from your retail copy.” It goes for £7.99.

‘Heads-Up’ PlayStation Store Update (19th May 2010) [PlayStation.Blog EU]