Sony cuts PS3 prices - finally!

playstation 3Sony Computer Entertainment of America finally cut the price of its Playstation 3 system today, an acknowledgement it’s tail is getting kicked in the ultra-competitive game console market.

The Playstation will now cost US$500 in North America instead of US$600. No word on whether on Canadian retailers are going to cut prices accordingly.

http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article2046847.ece

Even with the price cut, Sony’s PS3 is still about US$20 more than Microsoft’s Xbox and is double the price of Nintendo’s Wii.

Sony, which pushed back the launch of the PS3 by six months last year, has already lost considerable ground to Microsoft and Nintendo.

The price cut was widely expected by equity analysts even though the company last week denied a price cut was forthcoming.

If Sony doesn’t have a lot of other levers to pull in its attempt to regain lost market share so expect the company to slash PS3 prices further if the latest round doesn’t work.

Microsoft had a one-year headstart on Sony and has killer exclusive titles for its console, such as Halo 3 and Ghosts of Recon, which are expected to drive more console sales. Meanwhile, Nintendo’s Wii has become the top-selling game system because of its low cost and interactive experience. Last week, Nintendo said it has sold 6-million Wii consoles.

July 9, 2007 | Filed Under News Items and Commentary 

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