Sony Slashes Price of its PlayStation 3 Console

Facing declining sales of its powerful PlayStation 3 video game console, Sony has announced it will drastically cut the price of the device. Cuts have already been made at retailers, and in some cases represent overall price reductions of 17 per cent.

Pressure's been on Sony to decrease the cost of its flagship console since the holiday season, when Microsoft released the Kinect hands-free peripheral to major fanfare. Sony's rival device, the Move, hasn't sold nearly as well, and that's hurt sales of the PlayStation 3 (PS3).

All Major Markets See Price Reductions

Given the rising competition from Microsoft, Sony's cuts were rather expected. Starting immediately, the 160GB version of the PS3 will drop from $299 to $249, while the larger 320GB version of the console sinks from $349 to just $299. (Source: reuters.com)

Japanese and European consumers will also see a price cut, with the PlayStation 3 dipping from 299 to 249 euros and 29,980 to 24,980 yen.

Good Timing for a Price Cut

News of the cuts came just before the opening of Gamescom, Europe's largest video games exposition. It's a good time for the announcement, and should drive up interest in the console as the world turns its attention to the gaming industry.

Sony insists it will continue to profit from the PS3, and that the cuts are motivated by new manufacturing techniques -- not competition from Microsoft, or Nintendo.

For their part, Sony execs insist that the PlayStation 3 still has the legs to beat its rivals. "Ultimately, what will carry the day for us is the library of games we have," said Jack Tretton, an executive for Sony Computer Entertainment of America. (Source: wsj.com)

It's expected the cuts will help Sony get close to or surpass its goal of selling 15 million PS3s this year. However, it's tough to say whether or not they will help the company draw even with its competitors.