shams on 11 April 2007
Its a bad move, and almost certainly triggered because they were making a bigger loss on the cheaper model.
MS give consumers more choice, and Sony give consumers less. Nice work!!
I also heard that they were *forcing* retailers to primarily stock the more expensive version (again, due to profit reasons). And retailers also made a larger "cut" on the $600 model, giving them a greater incentive to stock and sell those.
...
If I was going to buy a PS3, it would be to play games - nothing else. I would go for the cheapest model I could find that would play those games. Lucky for me there aren't any PS3 titles I want to play... 
Gesta Non Verba
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