After flip flopping from the price dropping to not dropping we’ve finally got confirmation via PRNewswire. Sony have confirmed that the 60GB version of the Playstation 3 (PS3) will drop from $599 to $499. The price change is effective immediately and should be able to pick it up at retailers for the lower price. The main reason for the price drop is to make space for the new 80GB version of the Playstation 3.

The new 80GB version of the Playstation 3 (PS3) should release in August and retail for $599 ($659 CDN). Additionally the unit will be sold with a game - MotorStorm.

By featuring an expanded hard disk drive (HDD), the new 80GB PS3 is
designed to appeal to the online gaming and entertainment enthusiast,
providing ample storage space to download more games and other
entertainment content from PLAYSTATION(R)Network. There are currently more
than 60 playable games and game-related downloads available through
PLAYSTATION(R)Store, with expanded entertainment content coming soon. The
new model features the million-selling game MotorStorm in the box, allowing
up to 12 players to play online at one time, hitting the dirt in this
visually-arresting, fast-paced racing title.

Check out the full release details here.