According to a poster on the DVD Talk Forums, the Circuit City promotional sales flyer for the week of July 15th indicates the Playstation3 will be getting a price drop. The PS3 is now listed at $499 for the week of July 15-21, the week after E3 2007.
Although Sony has yet to confirm a price drop officially, GameDaily BIZ has received confirmation from the retail sector that the PS3 will be dropped to $499 next week. Sony itself recently talked about "refining" the PS3 price. Now it appears to be happening.