Foster City, Calif. - Capping off much speculation, and denials from the company that a price cut was in the works, Sony Computer Entertainment America announced on Monday that it has chopped $100 off the price of its PlayStation 3 console, which will now sell in North America for $499.

The PlayStation 3 has so far trailed far behind sales of the Nintendo Wii and Microsoft Xbox 360, and even with the price cut will remain the most expensive next-generation console.

Sony also introduced a new, 80GB PlayStation 3, which will go on sale in August for $599, alongside the existing 60GB version.

"The introduction of the 80GB PS3, the new pricing for the current 60GB model, the availability of more than 100 new software titles this fiscal year and, finally, the expansion of services for PlayStation Network, will provide even more options for users and will help bring new consumers into the PS3 fold," said SCEA president and CEO Jack Tretton.

The 80GB model, which is already available in Korea, will come bundled with the online-enabled racing game "MotorStorm."

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