I heard Sony was planning a price drop in August... I guess the rumors were right.
The PS3 hasn't been doing as well as the Wii and the 360 in terms of sales, supposedly Sony hopes the drop will boost their sales. I have a 360 and a PS3 and I really like them both, but for different reasons. At $299... getting a next gen gaming system and a Blu-ray player is a good deal. I'm sure when the new Gran Turismo, Final Fantasy, and God of War games are available their sales will climb.