Sony Computer Entertainment America have cut the price of the PlayStation 3 in America - just days after strongly denying that they were going to do so.

The announcement this morning saw not only the 60GB model being cut to $499, but was also joined by the news that a new 80GB version of the PS3 would be launching in August retailing for $599 and coming complete with a copy of MotorStorm.

With the return of the E3 Expo this week, it was widely expected that this week would see a number of announcements from Sony, Microsoft and Nintendo - it remains now to see what else Sony announce during the next few days, and what their rivals have planned in their somewhat predictable attempts at one-upmanship.