Lost amid today's Brett Favre news was Sony's announcement that it has cut the price of the PlayStation 3 to $299. The effect was immediate, with Amazon, for example, already selling the 80GB model for that price. Sony also announced

a new, slimmer 120GB PS3 that will be available Sept. 1, also for $299.

Sony said:

"The internal design architecture of the new PS3 system, from the main semiconductors and power supply unit to the cooling mechanism, has been completely redesigned, achieving a much slimmer and lighter body. Compared to the very first PS3 model with 60GB HDD, the internal volume as well as its thickness and weight are trimmed down to approximately two-thirds. Furthermore, power consumption is also cut to two-thirds, helping to reduce fan noise. While inheriting the sleek curved body design of the original model, the form factor of the new PS3 system features a new meticulous design with textured surface finish, giving an all new impression and a casual look. With the compact body and casual appearance, the newly introduced model will appeal to a wider audience who are looking to buy the best entertainment system for their home. ...

"The new PS3 continues to offer the cutting-edge features and functions of the current models, such as the ability to enjoy high-definition Blu-ray disc (BD) movies and games, as well as various content and services downloadable through the network. The new PS3's storage size has increased from 80GB to 120GB, and with the extra capacity users will be able to store more games, music, photos, videos as well as various content and services available through PlayStation Network."

One feature removed from the new PS3 is the ability to install a different operating system.

You can take a video tour of the new PS3 here.