Confirmed! - PS3 price cut and 80GB model announced

Starting today, the PlayStation 3 is officially $500 for the 60GB/HDMI edition, with the 40GB model being dropped and an 80GB version due to hit at the $600 price point. This new model will come bundled with MotorStorm but will also be the first in the U.S. to lack the PS2 "Emotion Engine" chip - meaning backward compatibility is a far-less effective software emulation only. The other interesting news is Sony's justification for the larger hard drive: It plans to launch more HD downloadable content, including a movie service to compete with Microsoft's Xbox Live Marketplace...