In addition, the company announced a new $599 SKU for the system. The $599 model will include a larger 80GB hard drive and a copy of Evolution Studios' Motorstorm.

The price cut on the 60GB PS3 had been denied previously by Sony president Ryoji Chubachi.

In an AP story, Sony spokesperson David Karraker touched on the company's goal for this week's E3 event. The company's focus during the show will be on "ways to increase the number of consumers who own PS3s and other products such as the PlayStation Portable handheld system, and expanding the system's library of available games," according to the report.

In today's announcement, Sony claimed it more than 120 new video games will be released for PlayStation 3 in North America during the current fiscal year ending March 31, 2008. Among them will be 15 PS3 exclusives.

"As we move into the next phase of PS3, it's important that we continue to evaluate our product line, offering consumers the technology and features that meet their growing needs for new forms of media and the way in which it is delivered," said SCEA president Jack Tretton.