Yeah, that's the key here. For informed consumers such as yourself, this is without question a price drop. For the uninformed (read: casual consumer) then they may not be sure what's happened here, other than that there is still a 499/599 SKU.

HOWEVER, I think Sony's decision to make the 599 version a "limited edition" was a very smart move. Even to the casual consumer, this screams "This is optional, you don't have to buy this version." Even if the 80GB model does take over eventually,  for now I think even uninformed consumers will understand that the 599 version doesn't contain essential components that the 499 version does not (that's always a nagging concern -- I'm sure you've purchased items that have multiple SKUs in markets you no little about, and wondered "why is this one cheaper?" 

You nailed it.

Also, there was no 20GB anymore so the only way you could get a PS3 was $600.  Now it's $500.  That's a $100 price cut.

As for the blu-ray promotion, that is going to last 3 months or more if I'm not mistaken. 

+1 for bodhesatva,

the "limited edition" expression may be very important since it feels like a "collector edition" for a game that u only buy if u are a fan. If u are not, u just buy the classic game for less money.

Its a $100 price cut to the previous low end price of $500. So in order words its NOT a price cut. Its like a store raising the price on a product from $100 to $125 dollars and then cutting the price back down to $100 later.

I've never heard more whining in my life. Jesus! They cut the 60G by $100, it's that simple.

Everybody is saying the exact same thing in this thread, except they all want to put their own spin on it.

Plain and simple, facts are ...

1 - 60GB Costs $100 less, so people who were waiting for that will now buy.
2 - Some people were/are waiting for a price drop below $500, and will not buy.
3 - Nobody is sure (as far as I know) of Sony's plans for the 60GB and it may go by the wayside like the 20GB.
4 - If the 60GB is discontinued then the $100 cheaper 60GB will have only truly been a clearance sale.
5 - Most consumers only see a $500 price tag, some are smart enough to check what the differences are but most do not. Especially when it is grandma who is buying Billy a PS3.

You can take and put any number of spins or implications into these facts, and everyone wants to emphasize the parts that highlight their points, but they are what they are.

Everybody has acted like you can only subscribe to one aspect of this... "Either you believe it was a price cut, or that the price point hasn't changed, but not BOTH!"

They are not mutually exclusive folks, in fact to understand the impact of these changes you really need to take both aspects into account. There is far too much bickering just for the sake of making one's console sound better. Get over it please, and lets get back to a real discussion.

Sqrl, Kaz Hirai announced that the 60GB model is discontinued. It is a clearance sale. It is NOT a price drop.

Peter Moore did not play Sell me Rock band! He made it look like Crap and he should not sing! Therefore, he should just shut up about Sony and the price cuts. He may Jinx them. Peter... Shhhhh.