So the news is coming out that on Jan 28th the 80GB PS3 is no longer going to be available.  The magic date of Jan 28th is also the date of the rumored PS3 price cut.  This will be the 3rd discontinued PS3 model since it's launch 14 months ago in the US and Japan. 

I think this is a smart move by Sony as long as they are not coming out with another model.  Having one model is easily the best move to avoid customer confusion.  Now if this is coming with another $100 price cut to the 40GB PS3 then Sony has a contender.  By offering a $299 PS3 to compete against the $449 Elite and $349 Pro Xbox 360 models Sony is making a big move to gain back lost market share.

It is currently believed Sony has dropped the unit cost of the PS3 to $400 (almost half).  There is also speculation that Sony will miss their fiscal PS3 shipping projections in March by a 1/4.  Offering the PS3 for $299 will mean a very cheap BluRay player is now available and at that price the PS3 should sell though very well.  If 2007 was the year of the Xbox 360 then 2008 could be the year of the PS3.

Source:
http://www.ps3fanboy.com/2008/01/24/best-buy-discontinuing-80gb-ps3/