After the ongoing ‘will they won’t they’ rumours, Sony of America has finally confirmed that the price of the 60GB PS3 in North America is to drop from $599 to $499, with immediate effect.

In addition, the company has announced a new 80GB machine, which will hit US retail next month in a $599 bundle that includes Evolution Software’s Motorstorm.

"As we move into the next phase of PS3, it's important that we continue to evaluate our product line, offering consumers the technology and features that meet their growing needs for new forms of media and the way in which it is delivered," CEO of SCEA Jack Tretton stated.

"The introduction of the 80GB PS3, the new pricing for the current 60GB model, the availability of more than 100 new software titles this fiscal year and, finally, the expansion of services for PlayStation Network, will provide even more options for users and will help bring new consumers into the PS3 fold."

There has so far been no word on a possible European price cut.