Turns out the rumors were true about the imminent PS3 price drop/rejiggering.

The top-line PlayStation model, with an 80 gigabyte hard drive, now costs $499, down from $599. That effectively eliminates the lower-end model, which has a 60-gigabyte drive and has sold for $499.

A new low-end model with a 40-gigabyte drive will go on sale November 2 for $399.

Unlike the other PlayStation 3 models, the new one won’t be able to play games made for the PlayStation 2. In a statement, Sony said this was due to a more extensive lineup of games of the PlayStation 3.

Will this help the PS3 or will Sony continue in vain to try and catch up with the 360 and Wii? Captain Obvious says some decent games would really, really help Sony’s case…

General, Video Games, A/V Club