Looks like Sony's as arrogant as ever.  John Koller, product manager for Sony, has told consumers not to expect the PSP to have a price drop before the end of this year.  Current pricing leaves the cheapest PSP package $70 more expensive than the Nintendo DS.  Koller even went as far as to say that the PSP doesn't need a price break, and that the 110 new games coming out by the end of the year will do enough to attract new customers.

Sony's emphasis in the past has been on all the multimedia features of the PSP as a way to give it an advantage over the DS, but the majority of people buy a game console to play games.  The extra features can only add to the price for so long, before people just go with a DS because they already have an iPod that can do everything else the PSP has.

Looks like whoever spread that rumor about PS3 games costing upwards of $75 was wrong.  PS3 games are slated to cost $59 apiece; apparently the $75 to $85 quote was just a conversion from yen to dollars.  Just check out Sony's website, where they're selling several PS3 games for pre-order.

Sony's certainly been in the news a lot lately.  You have to wonder, though, why they're paying more for games in Japan.  Why bother giving them the console for less if you're going to charge more for games?  It's probably just a supply and demand thing: people in Japan might be less willing to buy a console for that much money, but more willing to buy games once they have the console.

Finally, you can play Playstation games on the PSP.  I mean, it makes sense; the PSP is perfectly capable of playing PSX games.  The funny thing is, these guys actually beat Sony to it.  (Sony's been planning a PSX emulator for a while now, but it'll probably be released after PS3.)

Sony announced that the 20GB model of the PS3 will receive a 20% price cut, lowering the price to about $430, and HDMI will be offered on both models.  Here's the catch: the price drop is only in Japan.  Well, at least we get the HDMI...

The announcement was made just shortly after Microsoft announced it would be launching an HD-DVD drive for the Xbox 360 on November 17, the same day as PS3's launch.  It looks like Sony's worried about its competition.

We can only speculate as to why the price is lower only in Japan.  Microsoft's announcement might be it, but Xbox consoles don't sell in Japan.  So is it the Wii?  Could be, seeing as Nintendo could take away some of Sony's customer base with a console that costs half of the PS3.  Neither console has been released yet, but we're already starting to see competition between the three next-gen consoles; I don't know about you guys, but this time around buying all three is DEFINITELY not an option.

The two next gen consoles couldn't keep their plastic parts off each other when they finally came face to face. Games Radar managed to get a hold of a PS3 and quickly put the big black beast on top of the 360 for some console 1on1 action.

Before you get all excited, the PS3 was just a mockup from Sony made in wood as an accurately proportioned replica. As you can see from the pictures, black is bigger when it comes to consoles too.

Sony's "booth" was quite unlike Nintendo's carefully planned Wii area, and more like an expo unto itself. With PSP, PS2 and of course PS3 displays all competing for the square miles of floor space, the place was a zoo, but also held an impressive managerie of kiosks harboring playable titles. The PS3 games themselves were powered by late-release dev kits that were clearly displayed behind glass, and the titles sure looked pretty at those high resolutions, even if they were a bit PS2-ish in their controls and gameplay. Warhawk was of course the exception, and there were plenty of people waiting to get a shot at the action.

Engadget captured most of the chaos to share with you, so click on for the shots.

The Playstation 3 is revealed at Sony's E3 presentation - with more than a few shocks.   Availability is set for November 17th in the US and the playstation 3 will be coming in two flavours (expensive and mega expensive) similar to the Xbox 360 core and premium packages.