Well both sides are right in a way. The 60GB PS3 did receive a price drop of $100. The PS3 itself, did not receive a price drop but because you still have to have at least $500 plus tax to purchase a PS3.
I think the one thing everyone is missing out on this price drop situation is the amount of money Sony is going to lose on this. All those warehoused and unpurchased PS3s were manufactured at the higher production cost. Thats approximately 2 million PS3's that were manufactured at $840 production cost but will now be sold for $499. Retailers bought those PS3's from Sony for around $580 that means Sony is going to have to give back about $100 per each unsold PS3 that retailers have taken a delivery on. That refund cost would surpass MS's three year 360 RRoD warranty cost.
