The good news about Sony’s price reduction of the PS3 is short-lived with news today that the 60GB version will be phased out. When they are gone, they’re gone, SCEE President David Reeves said.

And Europe – you’re totally out of luck as you won’t get the price cut at all — but you will get a couple of extra games and two controllers..

There is a rumor originating from Capcom’s Chief Financial Officer Kazuhiko Abe, who told Reuters that the price of Sony’s PS3 "is likely to be cut again towards the end of the year," adding that he expects the PS3’s installed base to "grow gradually."

Don’t you just love price wars?

While Sony is offering price reductions on its PS3 system, it continues to sell the PS2, now updated with a weight reduction, new components, and probably, less shipping charges.

If you are planning the trip to Circuit City to take advantage of Sony’s price drop, you can change your plans and get it at Target — and then take care of some other shopping as well with the $100 smackers you have saved.

Sony is finally lowering down the prices for the PS3, but not for the reasons most think. Rumors had it that the long withstanding feud between the PS3 and the Wii inspired Sony’s decision, but Sony insists it is for two reasons: to "bridge the gap with Xbox 360 and to drive the nail deeper into the coffin of the HD DVD high definition format."

Hopefully, by the time the Christmas holiday season approaches, we will finally see if buying the expensive console is worth the trouble. Sony expects new games to arrive by next March, so if successful, we could see a better future for the PS3.