Yes, indeed they dropped it down to 299€ in 2009 when the PS3 Slim came out, 599€ was the base 60Gb PS3 which was the only model we got back in 2006, following with the 40Gb and 80Gb for 499€ and 399€ price cut.
But remember, 599€ was the price of a PS3, but it cost 800 to 900€ for the Sony to make, so they where selling the PS3 at a loss, only in 2009 they managed to sell it at a profit, of course, cutting many features present in the original 60Gb, as the 40Gb and above where cutting corners as well!
Xbox360 was no different, they priced the console at 499€ i think back in 2005, but Microsoft invested in the peripherals department, selling the Console almost at the same price as a PS3, with the features included!
But you have to remember, the jump from the PS2/Xbox to a PS3/X360 was a big deal back in 2005/06, that took the world by storm, not like the PS3 to PS4, and the technology was pretty cutting-edge for both sides, not to mention the inclusion of an HDD and Online Gameplay, something the not many people got in the PS2 days.
