Yep, the rumours were true: a slimmed-down, 120GB version of the PS3 is on tap for next month—and even better, the new console will sell for just $299, a $100 price cut that finally brings PlayStation 3 prices down to earth.

Sony unveiled the new, long-rumored PS3—which it says is 33 percent smaller and 36 percent lighter than the existing console, but with the same features and functionality—Tuesday afternoon at the 2009 GamesCon conference in Cologne, Germany. Expect the "Slim" (which is to be called simply the "PlayStation 3," if you want to get official about it) to arrive in stores by September 1, according to Sony Computer Entertainment CEO Kazuo Hirai.

Sony has uploaded images of the new PS3 onto its Flickr account (I've posted a few here, including a couple of comparison shots with the original console), and it looks exactly like the leaked images that we first saw way back in May, complete with a new, redesigned "PS3" logo and a considerably trimmed-down profile.

Not bad, but it was the new PS3's price that got the most attention: just $299, a figure that finally brings the PlayStation 3's price tag in range of the $250 Nintendo Wii and the $199 "Arcade" version of the Xbox 360.

Previously, the cheapest PlayStation 3 (the 80GB model) sold for $399, a price that kept many would-be PS3 gamers on the fence.

Meanwhile, as Kotaku reports, online retailers have already begun dropping the price of the current 80GB PS3 to $299, although bargain hunters would be well advised to hold off a couple of weeks until the new, slimmed-down 120GB version arrives in stores. As for the current 120GB PlayStation 3, expect a $100 price drop to $399, as of tomorrow (August 19).

Update: A few other details, fresh from a Sony press release ...

• The new PS3 will ship with a "Bravia Sync" feature that'll let you control the console's XrossMediaBar from a Bravia remote;
• Sony will sell an optional "vertical stand" for the new, slimmer console (presumably so it won't topple when it's sitting upright) for $24, starting September 3;
• Remember the old "Install Other OS" option on the original PS3? Sony says it is disabling that feature on the new system, which will instead "focus on delivering games and other entertainment content." Bummer.

Sony's GamesCon 2009 press conference also saw a few other announcements, including a digital comic-book reader for the PSP, with Marvel Comics signed up to offer "hundreds" of titles; other partners will be announced "soon," according to Sony.

Meanwhile, the official PlayStation Blog revealed firmware 3.0 for the PlayStation 3, which replaces the old "Information Board" with a "What's New" section with "interactive" PlayStation news along with recently played games.

Also on tap for firmware 3.0: a status indicator that shows your user icon, a list of your online PS3 pals, a "new message" icon, and a scrolling ticker with news from the PlayStation Network; PlayStation Store shortcut icons beneath the Game and Video categories on the PS3's XrossMediaBar; new "dynamic custom" themes and avatars (both free and "premium") for customizing the PS3 background; and subcategories for PS3 trophies.

So, what's more exciting, gamers: the new, slimmer PS3 console, or the $100 price cut?

[Image courtesy of Sony Computer Entertainment]