Word of a potential $100 PS3 price reduction has turned from rumor into denial into confirmed-but-still-rumor. Luckily, our sister site Kotaku has been following the story closer than anyone else on the web, and here is the epic tale according to them:

ACT I: JUICY RUMOR
A Circuit City promotion flier leaks, showing the PS3 at $499 for the week of July 15th-21st.

ACT II: DENIAL
Sony freaks, going on damage control and denying the rumors that the PS3 will ever be reduced in price (even though they admitted that gameplan just weeks before).

ACT III: ESSENTIALLY CONFIRMED (BUT STILL TECHNICALLY A RUMOR)
A merchandising manager for a major retailer confesses to the price drop.
Then, Kotaku's moles at both Best Buy and Circuit City check inventory listings. They both confirm the $499 price.

ACT IV to come...and it's called E3...and it's next week.

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