There's been much hand-wringing about the PS3's price and the fact it needed a cheap revamp ever since it launched in 2006. But here's the thing--Sony didn't drag its feet on the issue at all, especially if you look at the PS2's history.
Until yesterday, Sony's PlayStation 3 was the most expensive console on the market (that spot is now held by the Xbox 360 Elite, but probably not for long) and it was a huge clunky beast. Now it's a sprightly, skinny, quiet little number sporting a few less facilities (third party OSs for example) but also a nicely trimmed unit price: $299 for a 120GB version. It's a welcome move, it'll undoubtedly bump sales of the machine, and it's a very definite answer to the online clamor begging for something like this to happen for years.