A price drop is inevitable.  The question is not whether there will be a price drop, but when?  The latest news seems to point towards a price drop for both consoles this fall.  In addition, there are some more pieces of information worth noting.  Primarily, the PS3 slim is real (but it will be coming out later), the current 80GB PS3 will be replaced by a 160GB PS3, and that Microsoft will be replacing the Pro version in favor of the Xbox 360 Elite version.  And since this will occur near the holidays, both consoles will be available in bundles too, although we do not know what the bundles will consist of.

Given the amount of pressure publishers have been putting on Sony to reduce the price of the PS3, this news shouldn’t be surprising.  Microsoft is playing it smart though.  By lowering the price of its consoles, Sony will have a more difficult time moving hardware (unless the price cut is more significant than I think).  Whatever the case is, consumers win this holiday season (unless of course you want a Wii, because I don’t see a price reduction for that anytime soon).