Technically not a price drop... it's a phase out of the cheaper systems.
But for those that want to get in on the PS3... now's the time!
The two phaseout products are also sporting the PS2 chipset for better backwards compatibility... something that won't be in the new 80GB unit.
That is correct, the new 80gb model will not be backwards compatible with PS1/2 games.
Sony has discontinued production of the 60GB model. This so called "price drop" is actually a clearance sale. Sony will no longer sell the 60GB model once supplies are exhausted. They are debuting a new SKU with an 80GB hard drive, and a copy of Motorstorm for the origianl price tag of $599 beginning in August. But there is one hell of a catch - the 80GB model is NOT backward compatible. The new 80GB will not play PS1 or PS2 games. They are actually saving money with the upgrade and charging the same old price. So the truth is, you get less for your money. This has already pissed a lot of people off all around the internet.
Basically, they cut the price on existing, soon to be obsolete 60GB model. This causes a sales spike because people are getting a better deal than ever. The truth is, they are not benefiting the consumer. It is a simple stock boosting move to improve quarterly sales for their next report so their stocks don't take another massive hit due to the unusaully high unsuccess rate in sales.