Update: Yet another twist with the news revolving the 60GB version of the PlayStation 3, only a few hours after Sony Computer Entertainment Europe CEO David Reeves said that the discounted 60GB PS3 would no longer be available in the US after stock sells out, his statements were contradicted by a senior Sony Computer Entertainment America spokesperson, who said that quotes from Reeves in the press were "not accurate". However, SCEI president and group CEO Kaz Hirai settled the matter once and for all during an interview, where he confirmed that the 60GB PS3 is no longer in production for the US market.

In a recent interview with SCEE president David Reeves on GamesIndustry.biz, he said that the recent $100 price cut of the 60GB PlayStation 3 in the US is actually part of the company’s plan to phase out that SKU by this holiday season and replace it with the new 80GB unit.

"Well, they're not really [cutting the price] are they, because what the US are offering from the 1st of August is a USD 599 version with one game. All they're doing is taking their stock in trade that they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July" Reeves is quoted as saying. Asked to confirm that this means the end of the 60GB model, Reeves responds "In America, yes."
It seems contradicting that Sony is sticking with a $599 80GB PS3 as the only available option when the 60GB model has already failed to sell well at that price point. Sony Computer Entertainment of America has not issued an official statement regarding this issue though.

Sony also revealed that the 60GB PS3 would not be getting a price cut in Europe, however the company just announced a new 60GB Starter Pack for Europe, which comes bundled with both MotorStorm and Resistance: Fall of Man.