The Playstation 3 is shaping up to be the bronze in this console war but Sony is seeming to be doing there best to kick it up a notch. The 80GB Playstation 3 will now be priced at $499. This will bring the highest end model of the console just $20 above the price of the most expensive XBox 360, but with the PS3 comes a much larger back catalog of PS2 and PSONE games and on top of that, a next gen dvd player (Blu-Ray).

Now, the games for the PS3 still aren’t up to par with the XBox 360’s games, but now the highest end PS3 is the same price as the lowest end XBox 360 + the HD-DVD add on. I happen to think that the PS3 is shaping up to be a much better deal then the XBox 360, too bad the games aren’t there yet (hopefully Ratchet and Clank will fix that).

Along side this announcement of the price drop there is also a new PS3 model being debuted. On November 2nd a brand new 40GB PS3 will be released. The 40GB console will be priced at $399, the only problem is the 40GB PS3 won’t have any backward compatibility (although I don’t see why it couldn’t be added in software since all they would need is a software emulator).

Hopefully this will help the PS3 compete a little bit more with the XBox 360 then it is now, the PS3 keeps dropping in price and let’s hope that along with better games, it will force Microsoft to lower the price of the XBox 360 some as well.