Sony has dropped the price of the Playstation 3 80gb system to $499.99, down from $599.99. The price drop is effective immediately and you can expect the new lower price to be reflected in all stores by the weekend.

They also announced that, beginning on November 2nd, they will be offering a 40gb Playstation 3 system for $399.99.

80gb Playstation 3 system now $499.99