According to a poster on the DVD Talk Forums, the Circuit City promotional sales flyer for the week of July 15th indicates the PLAYSTATION 3 will be getting a price drop. The PS3 is now listed at $499 for the week of July 15-21, the week after E3 2007. This should be considered rumor for now until we receive confirmation from Sony, but I'm guessing we'll hear more about this at next week's E3 press conference.
I think this is legit, especially since it's in the flier.