Yup, the ongoing economy issues worldwide have made these price cuts necessary, but it's also the beginning of the build up to new consoles (which should more than likely be announced at next year's E3 for a 2013-2014 launch by my calculations). At its Gamescom 2011 press conference, Sony announced that effective immediately, the core 160GB PlayStation 3 model will now retail at $249.00 and the core 320GB console for $299 in the US.
Sony also announced a new value model PSP without Wi-Fi support at the event, but as far as I can tell, this model is only set for an European release at a price point of 99 Euros. I'd hope that this model makes it to US shores, as there are literally TONS of UMD games out there that will sell if bundled with the new lower-priced unit.
As for the new model Wii, it's coming for this holiday season (at least in the UK), loses GameCube support (games and peripherals) and will come bundled with two titles, Wii Party and Wii Sports plus one Wii Motion Plus controller and one Nunchuck. OF course, this will mean bigger sales numbers for both Sony and Nintendo as these newly discounted systems sell (some to new users waiting for a lower entry fee to current-gen consoles), so it's all good. Now, I wonder what Microsoft is cooking up on the discount front for its fan base?