207w ago - According to Arstechnica's favorite inside source, a price drop is coming to both the Sony PS3 and Microsoft XBox 360 consoles this fall.

To quote: Since we can't name the source, we're treating all this information as rumor, but the Mole's reputation in the industry for breaking large stories and outstanding track record for accuracy speaks for itself.

The 80GB model is going to see some serious hardware constraints in the weeks ahead, and retailers have about 60 days worth of inventory before the systems will become hard to find. Expect to see many more 160GB units on store shelves.

Those units have no constraints yet, but if the retailers sell through that supply as quickly as they did the 80GB, Sony is in a good place for the final part of its plan in 2009: dropping the price of hardware and launching the PS3 Slim in the fall.

Expect the Xbox 360 Pro to disappear in July or August, but you're going to see some solid bundles to get those systems moving off store shelves. The Halo 3/Fable 2 bundle the Mole previously tipped us off to shows that Microsoft is willing to put some good games into the box to get people buying.

So what are we going to do without...

208w ago - GameStop has revealed via IGN that it believes a PS3 price cut in 2009 is highly likely.

According to them, a Wii price cut is also expected this year.

To quote: Executives at major retailer GameStop have weighed in with their console predictions for the remainder of 2009, expecting both PlayStation and Wii to receive a meaningful price cut before the year is out.

That's according to a research note from analyst Arvind Bhatia of Sterne Agee, following a meeting with key GameStop executives.

As reported by Gamasutra, GameStop cites the slowing of sales for both Nintendo and Sony's consoles, with PlayStation 3 in most urgent need of attention.

208w ago - Update: According to Kotaku PlayStation spokesman Patrick Seybold has now stated:

"PlayStation has tremendous momentum coming out of E3, and we are seeing positive growth with more than 350 titles slated to hit across all our platforms, including many anticipated games from our publishing partners."

According to VG247 (linked above), Sony Computer Entertainment Europe has just issued a statement on Bobby Kotick's threat earlier today to drop PS3 and PSP support.

To quote: "We respect our third-parties' opinions and their right to express those opinions but we will not be commenting on this story," said an SCEE rep.

The Activision boss said this morning that his company may drop support for Sony hardware in 2010 or 2011 unless PS3's price is cut.

Additionally, Wedbush Morgan analyst Michael Pachter has already branded Kotick's comments as "bluffing".

208w ago - It appears the latest issue of PlayStation World Magazine reveals that both a PS3 price cut and the rumored PS3 Slim will both be announced at this year's Tokyo Game Show.

To quote: Expect the long-awaited price chop to be announced at the Tokyo Games Show.

This year the Tokyo Games Show will be held from September 24 to September 27 in the Makuhari Messe, in Chiba, Japan.

Sony could make this announcement a lot sooner now that Activision CEO, Bobby Kotick has threatened to stop supporting the PS3 if a price cut is not announced soon.

The PS3 Slim packaging looks almost identical to the confirmed PSP Go, so it isn't a fake. Expect the smaller, lighter PS3 to be announced at the Tokyo Games Show in September, just in time for Xmas.

208w ago - Activision CEO Bobby Kotick has threatened that the company may drop support for the PS3 console in 2010 and 2011 if things don't pick up for Sony's platform.

Apparently he wants a price cut now because the attach rate of games is very low.

To quote: "They have to cut the price, because if they don't, the attach rates [the number of games each console owner buys] are likely to slow. If we are being realistic, we might have to stop supporting Sony."

Ask when and he says: "When we look at 2010 and 2011, we might want to consider if we support the console -- and the PSP [portable] too."

Sounds like Sir Howard Stringer, Sony's chief executive, is going to have to call Mr Kotick pretty fast.