Long awaited yet unexpected, Sony has dropped the price of the 60GB Playstation 3 model to $499, from previously $599. A new 80 GB model is to be released that will come prepacked with the racing game Motorstorm.

The initial sales of the Playstation 3 console were sluggish due the unprecedented high price for the video game console. Nintendo’s Wii, the cheapest competitor in the next gen console market, continues to enjoy steady sales due to its wide appeal and acceptable price. Microsoft has it’s own problems, due to the lack of reliability of the initial batch of Xbox 360 consoles.

Sony says that better efficiency in making the consoles allows them to pass the savings on to the consumer. While there’s little doubt that Sony’s manufacturing plants have made progress in making the console cheaper, it’s also clear that this price reduction, in the middle of the year, is to get some traction even before the next hot holiday period.

Sony hopes to continue to create extra revenue by offering an 80 GB model that will sell for $599, just like previous 60 GB models. To make that deal sweeter, they’ll also throw in a free game.

From Sony’s press release:

Sony Computer Entertainment America Introduces New 80GB PLAYSTATION(R)3 (PS3(TM)); Announces New Price on Current 60GB Model

80GB System Designed for Today’s Connected Gamer, 60GB Price Now $499

FOSTER CITY, Calif., July 9 /PRNewswire/ — Sony Computer Entertainment
America (SCEA), Inc. today announced a new 80GB model of its
PLAYSTATION(R)3 (PS3(TM)) computer entertainment system. Beginning in
August, the new PS3 model will be available in North America for a
suggested retail price of $599/$659 CND and will be sold with the popular
online-enabled racing game MotorStorm(TM). In conjunction with this news,
the company also announced that effective immediately, the current 60GB PS3
model will be available in North America for $499/$549 CND, or $100 below
the original launch price.
By featuring an expanded hard disk drive (HDD), the new 80GB PS3 is
designed to appeal to the online gaming and entertainment enthusiast,
providing ample storage space to download more games and other
entertainment content from PLAYSTATION(R)Network. There are currently more
than 60 playable games and game-related downloads available through
PLAYSTATION(R)Store, with expanded entertainment content coming soon. The
new model features the million-selling game MotorStorm in the box, allowing
up to 12 players to play online at one time, hitting the dirt in this
visually-arresting, fast-paced racing title. […]

Says Jack Tretton, president and CEO of SCEA.

“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.”

From the Sony Playstation Blog: SCEA corporate video: President & CEO Jack Tretton announces the availability of a new 80GB PS3, and a price drop for the 60GB PS3.