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ps3.ign.com/articles/734/734349p1.html

Sony has announced a price drop for the  lower end PS3 (the one with the 20gig HD).  Not only did they drop the cost by about 150 bucks they made it HDMI compatable right out of the box.

Rumors say the American verson might see the same price reduction.  Rumors only, but hey, its something to look forward too see what happens.

That will be fun to watch. I think it's interesting, as it is well know that MS is having a tough time getting traction in Japan. Is Sony REALLY woried about the 360 over there? Or is this in response to the VERY affordable price point of the Wii?

I'll guess it has more to do with the wii than the 360.

I had actually forgotten about the Wii when writing my first post. It probably is to help to bring a tougher fight againt the Wii. I think Microsoft is going to be a very unfortunate casulty in this fight between the PS3 and Wii in Japan.