As we reported earlier, the Honda Insight has been selling like hotcakes in Japan and there were rumors bubbling that the Insight’s main hybrid competition, the Toyota Prius, might see a price drop to better compete with the Insight.

Well that rumor has moved into the realm of fact as Toyota has announced that the current Prius model will stick around for a while and will be available for a few thousand dollars less than before at $19,250 USD (1.89 million yen), making it the same price (in Japan) as the Inisght.

The 2010 Toyota Prius price point has not been set yet but there are rumors that Toyota is planning on releasing an even cheaper hybrid model which may be priced as low as $14,000 USD.