Two days before the show's official start on May 10, Sony held its long-awaited press conference, and our intrepid John Falcone was there, reporting what's sure to be the biggest news of the show: The Sony PlayStation 3 will retail for $499 for the basic version and $599 for the step-up model. More interestingly, the $499 version will reportedly lack (among other features) the vaunted HDMI output, making it all but useless as a relatively cheap Blu-ray player since a digital output is necessary to guarantee full HD resolution. For people looking to save some cash over first-gen Blu-ray decks, which start at $1,000, the only option appears the be the $599 version--still a relative bargain. For more details, check out his post at our dedicated E3 site, e3.cnet.com, where you can find the latest show news.
In other E3 news from yesterday, Sony revealed details about the PS3's controller.