A cheaper PS3 is announced to release on November 2nd. Just like the iPhone, there is a price cut on the 80GB PS3 from $599 to $499 and they're discontinuing the 60GB PS3 which was sold at a price of $499. Now they're coming out with a new lower-end model with a 40GB drive for $399.
The difference between the new lower-end model and the top-line model is that the lower-end model can only play PS3 games. So, you wouldn't be able to play games made for the PS2.
Since the release date is before the holiday season, there's still a chance of getting one. Gotta be quick 'cause I have a feeling it will be sold out for awhile.
Article: http://www.cnn.com/2007/TECH/ptech/10/18/sony.playstation3.ap/index.html
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