Since the PS3 price drop and the release of the PS3 Slim, Sony has been seeing some spectacular gains in sales. So much in fact, its CEO warns that PS3s could be in short supply this holiday season. “We are up about 300 percent over where we were pre-price drop,” says CEO Jack Tretton. “We are up significantly versus last year.”

The price drop let the PS3 slip ahead of the Nintendo Wii and Xbox 360 in sales for the first time, but it is uncertain for how long since the Xbox 360 dropped their price days after Sony, and it is highly suspect the the Wii will be getting a price drop in the next couple weeks.

Tretton also stated that he expects the price cuts and popular games lineup for the holiday season to lift the entire video game industry, which has been suffering from the poor economy.

“In a very difficult economy, I couldn’t be more optimistic about our fortunes for the rest of the year and for the future,” he said.

But he noted that higher demand for the PS3 could leave some retailers out of stock.

“If things continue at this pace, it is conceivable that there will be product shortages,” Tretton said.