Sony PS3 price cut, or not?

This week I was watching the news from the E3 conference in Santa Monica, California, keeping my ears open for an Xbox 360 price drop which analysts expected. It did not come.
Instead, after announcing a price drop of $100 (down to $499) for the 60GB PlayStation 3 on the day before the conference, Sony confirmed that the company is no longer producing these 60GB PS3s and that "all new PS3s will be 80GB models to be sold at $599" according to the Crave Blog, "PS3 price cut isn't going to last?"

Also announced at E3 was the redesigned Sony PSP (PlayStation Portable). It has the same form factor as the first Sony PSP, except it is "33 percent lighter, 19 percent slimmer, offers better battery life, faster game load times, and video output to TVs" (also from the Crave Blog)
It is not quite the Sony PSP 2, but the video output sounds promising.

Of course a whole bunch of new games were announced at E3. I must admit I didn't pay too much attention these, having more than enough PSP games, and trying to keep my Xbox 360 game collection small (the ability to download playable game demos from Xbox Live is really cool).