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We need to realize that there is a clear distinction between MODEL and BRAND. The LOW price of the PS3 BRAND is not set to $499, that's simply the price of the 60gb MODEL!

If SONY wanted to set up a $499 entry price for the PS3 brand, why didn't they drop the 60gb to $499, when they canned the 20gb?

The 20gb MODEL was sold for $499 until they axed it.
The 60gb MODEL will (now) be sold for $499 until they run out of stock
The 80gb MODEL will sell for $599 UNTIL SONY SAYS OTHERWISE!

For comparison: I could argue that LOGICALLY, MS will issue a price cut because it's now cheaper for them to make consoles, or they have cheap elven labor, or whatever, but the POINT OF FACT is that MS has not announced a price drop, and neither has SONY (for the 80gb model). Until a REAL source comes out and announces a $499 80gb, you're just reading tea leaves.

In fact, I now see how dubiously clever SONY can be. I LOGICALLY believe that they HAVE NO PRICE CUT. Now, we can buy a 60gb for $499, until they run out of stock, just like we could have bought a 20gb, until it ran out of stock. But, in the end, we'll still have a SIX HUNDRED DOLLAR PS3!