As reported by Gamedaily, it appears that the Sony Playstation 3 will see a $100 price drop on July 12th.  This has not been confirmed by Sony, but it is expected that this will be officially announced during E3.

Sony should start to see a significant increase in consoles sales given this price drop, combined with the 5 free Blu-Ray movies deal.

Stay tuned for Microsoft's (and perhaps Nintendo's) response...