Along with the news comes an immediate $100 price drop on both existing systems, with the 80gb dropping to $299.99 and the 160gb dropping to $399.99. The Slim will debut the first week of September and will also carry the $299.99 price tag.

The technical differences between the Slim and the Fat are few and far between, the Slim keeps the same features such as Blu Ray, WiFi, and upgradeable hard drive. It sheds more than just weight and size though, with the Slim requiring 30 watts less of power to run. The ability to install Linux on the system is also gone, however, most users who would do that still have the ability to install it on the 80gb and 160gb models.

An interesting side note is the rumored 360 price drop. Effective September 1^st, the 360 is rumored to drop not only it's Elite price, but also the price of the Arcade. The Arcade's rumored price is $159.99 and the Elite's price would drop to $299.99 or $259.99. While I'd like to believe these rumors, I think its a safe bet to say that while the Elite will most assuredly drop to $299.99, I don't see the arcade dropping to $159.99, however it would dent (if not kill) the little momentum that Sony just built up with the PS3 Slim.