A PS3 price cut rumor spread like wildfire across the Internet this afternoon when several sites spotted a new advertisement from Circuit City. The ad as seen on Kotaku lists the PS3 console at $499.99, James Brightman 00 less than its current price.

It wasn't clear at first if this ad was a special deal specific to the electronics retailer or if it's indeed a retail-wide price cut instituted by Sony Computer Entertainment America (SCEA). As it turns out, a merchandising manager (who wished to remain anonymous) at one of the world's biggest retailers has confirmed to GameDaily BIZ that the price drop is indeed retail-wide and it's scheduled to take place on July 12, although the first wave of ads to promote the PS3's new price won't kick in until Sunday, July 15.

Many analysts have speculated that Sony would drop the price on the expensive console this year, and some even predicted that it could happen this summer. It's starting to look like they were right. We're sure to find out much more next week when Sony holds its press conference at E3.

SCEA when contacted for confirmation declined to comment.