It seems like the price cut has been put to effect. One of PS3 Fanboy's readers was able to purchase a 60GB PS3 for $499.99 in Target. When PS3 Fanboy contacted Target, they confirmed that their PS3 are being sold for the said price.
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UPDATE 1] A Kansas Target has the 60GB PS3 in its computer at $599
[UPDATE 2] Another tipster has told us that today they sold two at Circuit City at $499. Confused, the manager called it in and got a confirmation that it was correct. We are in the process of verifying this.
[UPDATE 3] A Target store in Rancho Cucamonga in California has confirmed that the 60GB PS3 is in their system for $499. It looks like there's no pattern to which stores are and aren't offering the price cut.