Sony kills 20GB, 60GB PS3 in Japan, focuses on 40GB model

Japanese tech mammoth Sony announced Thursday that it will discontinue the sale of 20GB and 60GB versions of its next-generation PlayStation 3 gaming console in Japan in order to concentrate on the new low-range model, 40GB PS3.

Making the announcement Thursday at the CES 2008 event, Sony Japan said they will cease production of both 20GB and 60GB models in home town after a final shipment next week. This means the 40GB machine will be the only model available in Japanese gaming market.

“Along with both the increased efforts to improve software development environment and the availability of a more extensive line-up of software titles for PS3, Sony Computer Entertainment Inc. (SCEI) will vigorously promote the expansion of the PS3 platform by further concentrating on the 40GB HDD (CECHH00 Series) model,” Sony stated in a press release

Launched last year in November in Japan, the 40GB model features Blu-Ray, the 40GB hard drive, Wi-Fi connectivity and a Sixaxis controller, but it has only two USB slots instead of the four provided in the 60 and 80GB models. Moreover, the device drops hardware PlayStation 2 compatibility, and it lacks the multi memory card port. However, it is capable of running PS3 games.

The new scaled-down 40GB version of PS3, which significantly differs from the standard 60/80GB version, retails for 39,980 yen ($364.50).

Officially announced in May 2005, PS3 is Sony Computer Entertainment's third video game console and the successor to the 7-year-old PlayStation 2. 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.

The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles. Despite being technologically advanced than its rivals, sales of PlayStation 3 have significantly trailed those systems. Among the trio of next generation gaming consoles, Nintendo has emerged as the numero uno in sales.

The sales data illustrates that despite having significant graphics and processing power, the PS3 and Xbox 360 have apparently not succeeded in alluring consumers. Nintendo’s Wii console though has less powerful processors than its rivals but it features an innovative motion-sensing controller that has helped build buzz for the machine. Its motion-sensing control system allows users to play games with their body movement.

The three companies are locked in a fierce battle for dominance in the $13 billion U.S. video game market.