Sony Follows Nintendo Footsteps, Announces PlayStation 3 Price Cuts

Consumer electronics giant Sony Corporation has slashed the price of its PlayStation 3 console by one fifth across the United States, Europe and Japan to boost its sale in the upcoming holiday season.

According to AFP, Sony Corp. on Wednesday announced reduction in the retail price of its 160-gigabyte PS3 from $299 to $249 in the US and from €299 to €249 in Europe. The price cut of the PS3 from 29,980 yen to 24,980 will be effective in Japan starting Thursday.

The company is preparing to reduce the price of its 320 gigabyte PS3 by around 14 percent in all the three major markets. The price of the console has been reduced from original cost price of $349 to $299 in the US.

"Historically, we've seen sales increases from our price drops and we expect to see the same here." chief executive officer of Sony US PlayStation division, Jack Tretton told Reuters in an interview.

With more than 50 million units of PS3 and more than 60,000 gaming titles to its name, Sony is looking to follow in the footsteps of rival company Nintendo which recently slashed the prices of its 3DS handheld gaming console in Japan and Europe citing sluggish sale.

Meanwhile, a new version of the PlayStation Portable has been announced by Sony at Gamescom 2011 in Cologne, Germany. More on this later.