Sony Computer Entertainment America, the force behind the PlayStation3, kicked off the E3 gaming conference with a long-rumored price cut for the PlayStation3. Less than a year after its debut, the cost of the PS3 is now $100 less than it was when it first hit shelves in November 2006 -- it's dropped from $600 to $500.

In addition, the company introduced a higher-end PS3 featuring an 80 GB hard drive that will retail for $600. The $500 PS3 has a 60 GB hard drive, and the company discontinued a cheaper 20 GB hard drive version earlier this year.