You could never get the 20gb model in canada, i know that for a fact, maybe they had about 20units when it came out but nothing more. I think japan is the only market where you could and still can get the 20gb model.

Missing something else...

AFAIK, the 60Gig PS3 is effectively in clearance. Sony will no longer produce the units - once they are sold out, its over (replaced by the 80Gig PS3).

So the $499US price point is temporary (once sold out, only 80Gig models will be available - for $599).

Hopefully once they sell out, they will release the 80Gig model for $499 permanently. I don't think the public will be impressed to find that the price effectively goes up $100 in a couple of months.

The 60gb. was $599. It is now $499. = Pricecut. Can't get much simpler than that.

Thanks captain obvious, but what we are talking about is if it actually makes the system any more accessible from a standpoint of playing the games.  In this case, no it really doesn't.  There was already an option to play Playstation 3 games for $500.  Certainly the 60GB is a better value but the fact remains that from a pure gaming standpoint, if you want to play PS3 games, it's not going to be any cheaper now than it was 6 months ago.

I have to agree with the original poster. It's not a real price cut. I don't think this will help[ Sony's bottem line much.

Maybe if they keep fooling consumers by adding another 20gb every few months and pretending the next model down has had a significant reduction in price tehy might shift a decent number of units.

But are they being used for games machines or cheap Blu-ray players?

The OP's argument was that there was no price cut because all sony did was add storage space. Well, that's incorrect. They took their 60gb. model, which is currently the only model being produced for sale and has been for months now, and dropped the price by $100. That's a price cut. So, having only been able to purchase the 60gb. model from retail for the last two or three months at $600, you can't say there hasn't been a price cut simply because three months ago you could get a completely differnet and lesser model for the same price. No matter how you want to spin it with semantics. There was a price cut. It doesn't matter that you could buy a $500 PS3 three months ago because the majority of people didn't want the 20gb. and it was discontinued. It appears people were more interested in the extra features the 60gb. model had to offer.

Despite the cheaper version of the 360, people still opt for the premium. If the 360 dropped the premium to $299, the elite to $399, and discontinued the core, would that not be a price cut simply because you could already get some version of the 360 at those prices?

About it being more accessable from a gaming standpoint, I disagree. Obviously the 20gb. wasn't popular and that is why it discontinued. People had the choice to buy the 20gb. at $500 but opted for the 60gb. model at $600. Now the 60gb.(the more popular version) is more accessable to people because of the $100 Price cut. A $500 version from retail of any kind has been inaccessable to most for going on three to four months.

Appearantly people find it more accessable because after the Price cut, there has been a signifigant increase in sales.

I know what you guys are trying to say and I understand where you are coming from, but IMO the OP did a poor job for making an argument that there was no price cut. In my eyes, I can get the $600 model for $500 and I had no interest in the cheaper model that had no WIFI, no Card Slots, and only had 20gb. of space(which I knew wouldn't be enough because I have to keep deleting stuff off my 360). Maybe I'm just taking his opinion too literal?

Shams if you really think the new price is not permanent (500 dollars) I am really shocked by your reasoning.

The new 600 SKU comes with a pack in game. The 80 gb will replace 60 gb at 500 dollars. It's a fact. this is why this is a price cut.

I think Sony is confusing console with computers. For computers, it's normal to put out newer hardwares for upgrade. For a home console, it's supposed to be a buy-once kind of thing.

In a sense, the OP is right because the price is still 499 and 599.

As for pack-in game. Why an old game? Adding a new hot hot game will surely sell the console better.

It's true that the 60 GB PS3 model had its price cut. But the PS3 itself didn't.

Where is the 20 GB model? A real PS3 price cut strategy would reintroduce that model @ $400. Then Sony would finally be able to say that they have a PS3 under $500.

The reason they didn't do that is obvious - they would lose too much money. Sony no longer has the financial ability to fight this console war properly!

PS: Don't tell me about how noone wanted the 20 GB model. That could well change if its price was $400.