You're partly right there, and it's not rumor, it's a fact as even major news outlets like FoxNews, etc in their tech sections are covering it.
Basically it's not a reduction per-say, but a shift. The $600 unit is going to $500, this is true, but there is a replacement version. For $600 now you can get a 120GB unit and 1 free game (motorsport) along with it, also uses some new micron level on the cell which reduced heat (bfd to average or most anyone really.)
Deal is, it's still equally so a ripoff. Hmm let's add this up some. PS3 $600=120GB HD unit+game...and currently 360 Elite is $480 and also has a 120GB HD and goodies.
SO where really is the savings? Get a 360 for $400 with the smaller drive, or the PS3 with the smaller 60gb drive for $100 more yet ...OR, get the bigboy setups they have and still save considerable cash with the 360. Sony fails again really on this move. I laugh not on that but how much they're losing considering the 60GB at $600 they'd lose $200/sale, this can't help.
Oddly seems Gamestop is NOW doing a 'special sale' through part of September so it can be had for $500, but officially I read on the AP wire that it wasn't until end of August the price was official. Go figure.