Sony confirms PS3 price cut and launch of new 80GB version

Sony Corp. confirmed on Monday that it will cut the price of its 60 GB PlayStation 3 game console by $100, or 17 percent, in the United States, apparently trying to regain the market share it is gradually loosing to arch-rivals, Nintendo and Microsoft.

Tokyo, Japan-based tech mammoth’s American unit, Sony Computer Entertainment America, Inc., or SCEA, announced today that its current 60GB PS3 model will be available in North America for a lower price of $499, below the original launch price by $100, with immediate effect.

Sony’s PlayStation 3 was launched on November 17, 2006 in North America in two different configurations, a $600 Premium model with a 60GB hard drive and a $500 Basic version with a 20GB hard drive. PS3 gaming device faces fierce competition from rival video game consoles including Nintendo's Wii and Microsoft's Xbox 360, which both have a much lower price tag.

PS3 is Sony Computer Entertainment's third video game console and the successor to the 7-year-old PlayStation 2. It competes with Xbox 360 and Wii as part of the seventh generation of video game consoles.

Due to insufficient demand, Sony already has discontinued the shipment of the 20GB PS3 gaming consoles. Understanding the diminishing popularity of 20GB PS3 gaming console, which were loosing their passion to the 60GB version with each passing day, Sony in April decided to discontinue shipment of the cheaper 20-gigabyte version of its next-generation PS3 gaming console.

Both Basic and Premium PS3 models have much of the same hardware inside. Besides the higher hard drive capacity what makes the 60GB console superior are built-in wireless support, slots for memory sticks and other storage media.

Despite being technologically advanced than its rivals, sales of PlayStation 3 have significantly trailed those systems. Sony has enjoyed an iron grip on the video game console market with its two previous PlayStation models, PlayStation (1994) and PlayStation 2 (2000). The combined units sold for the two models recorded a high of over 200 million units globally.

Sony, Microsoft and Nintendo, the three companies are locked in a fierce battle for dominance in the $13 billion U.S. video game market, and for the moment, Sony is lagging behind both of its competitors in terms of sales. Among the trio of next generation gaming consoles, Nintendo has emerged as the numero uno in sales.

Meanwhile, Sony has also announced another model of PlayStation 3 with an 80-gigabyte hard drive and a $600 price-tag. Except its 80 GB hard drive, the new model will be identical to the existing PS3 models.

The new PS3 model will likely hit the market in August.

Sony, Microsoft and Nintendo, the three companies are locked in a fierce battle for dominance in the $13 billion U.S. video game market, and for the moment, Sony is lagging behind both of its competitors in terms of sales. Among the trio of next generation gaming consoles, Nintendo has emerged as the numero uno in sales.

Launched in November last year, Nintendo’s Wii console retails for $US250, while PS2 costs only $129. The PS3 and Xbox 360 start at $499 and $299 , respectively, while their high-end versions are priced at $US599 and $US399(Xbox 360 Premium System) and $US479 (Xbox 360 Elite System), respectively.

The world's biggest maker of video-game consoles, Sony is also a leading manufacturer of electronics, video, communications and information technology products for the consumer and professional markets.