While the buzz at GDC was about a possible price break on the PlayStation 3, today all the rumors about a Sony price drop have been confirmed... for the PlayStation 2. Starting April 1, new PS2 hardware will cost $99.99, coming in below the magical $100 price point. Compared to $400 for the PS3, that's almost an impulse purchase.

“PlayStation 2 set the industry standard for worldwide mass market adoption and is a clear embodiment of Sony's commitment to platforms that deliver 10-year product lifecycles. It's a tribute to outstanding technology, great consumer value and unprecedented development support that we've now been able to do twice what no one else has ever accomplished,” said Jack Tretton, president and CEO, SCEA. “Demand for PlayStation 2 remains strong throughout the world, and the new $99 price point will bring in new consumers who will discover how PlayStation platforms are an outstanding choice for their gaming and home entertainment needs.”

Is a price cut on last generation's hardware big news? It is when the PS2 still continues to sell incredibly well at retail, month after month. The PS2 also has the distinction of being the most popular gaming system ever, with over 136 million units sold worldwide. The PS2 was also important for DVD sales, as the gaming hardware was, for a time, one of the most affordable DVD players as well as a gaming system.

The ability to keep your PSone catalog of games for play on the system was another major selling point and, although DVD players can now be found for $20 and PSone games aren't much of a concern for the modern audience, the value and power of the games available on the PS2 is unmatched in the industry. Now that the hardware is $99, you can pick up a new system and a literal armload of games for the cost of one current-gen system.

Sony addressed the rumored PS3 price cut with an official statement from Al De Leon, PR Manager for Sony Computer Entertainment America. "As we have stated previously, we do not have plans for a PS3 price drop, and any rumors to that effect are false and are the result of speculation," he wrote to the gaming press. "SCEA remains focused on the long-term momentum of PS3. With the industry's best software lineup this year, combined with our most aggressive marketing campaign to date, we remain confident in our approach and the value we're delivering with PS3."

The PS2 price drop is great news for budget-conscious consumers—a group that includes nearly everyone these days—but while it may give the PS2 a boost, it neglects the system that needs a price cut the most in the market: the PS3. Publishers want it, gamers want it, and Sony needs it to catch up with the Xbox 360 in terms of units sold. Focusing on PS2 sales seems like a step in the wrong direction for a company that wants to move forward.