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More clarification:

If you wanted to buy the cheapest PS3 in November of 2006, it was five hundred dollars. If you wanted to buy the cheapest PS3 in July of 2007 (Post 80 gig intro, 60 gig "price drop") it was five hundred dollars... now is that a price drop? No.

If you wanted to buy the cheapest PS3 in July it was 500. If you wanted to buy the cheapest PS3 in November of 2007 (post new sku) it was $400.

So in essence. the PS3's price point for the cheapest model has dropped one hundred dollars. The same applies to the high-end model. Therefore, sony has only dropped the PS3s price $100.