A lot of sites are saying this. Its possible its true.

A very reliable source has told us that on August 18th Sony plans to announce price cuts for "the PlayStation family of products". The PS3 is almost certain to be one of these, whereas the others remain a mystery. Perhaps PSP 3000? Maybe Sony is responding to criticism on PSP Go's price? Perhaps just other devices like controllers, PSEye, etc.? Time will tell. It just so happens that on the 18th, Sony is holding a 3 hour long press event at GamesCom in Cologne, Germany. They obviously have some big bombs to drop if they wanted 3 hours of our time, so that further lends credibility to this rumor. Just please bear in mind, until Sony says it themselves, this is being reported as a rumor, so take it with a grain of salt. We however trust this source completely, their info has proven to be true in the past.

Check back with PSInsider frequently, as we will be bringing you the latest on this rumor and more as we get closer to the conference.

Update: When further pressed, our source gave a tad bit more clarification on what they meant by PS family products getting a price cut. They did specifically mention PS3, but also other products. When we tried to find out which ones, they replied "They will do something for the 1st time". They also ruled out other accessories like PSEye and controllers. Our guess is that the old PS3's will get a price cut to clear out stock, and a PS3 slim will be released at a reduced price as well. Kotaku has reported that 7-Eleven stores in Japan will stop taking pre-orders for 80GB PS3's, with the reason being "for the manufacturer", as of 8-9-2009. In the past, every time a model was discontinued, it was to make way for a new model to be released. While we could see the same PS3 we have today with a bigger hard drive, we're more inclined to believe it's a PS3 Slim with all the rumors that have been going around lately.

Oh the age of internetz