Here is what will happen:
They will cut the price of the current PS3 by 100$
BUT
Will introduce the "ultimate" model. This will be slim and remove BDRoM and so it is totally run on digital distribution. Also, it will only work on a smaller TV. They will price this must have model at $599 US and $599 Euro, because it is the same currency in Sony Land.
"Man is born free but is everywhere in chains" - Rousseau