PS3 Price Drop

Sony Corp. surprised some at the annual E3 conference on Tuesday by reducing the price of its high end PlayStation 3 console, following Microsoft Corp's earlier move to reduce the price of its Xbox 360.
The Japanese electronics giant (SNE:sony corp adr new
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9:57am 07/16/2008

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SNE 40.80, +0.42, +1.0%) told a gathering of media and financial analysts it would now charge $399 for the 80GB version of the PS3. Previously, the company sold a 40GB version of the device for that price.
The move was unexpected, as few expected the company to immediately follow Microsoft's move. Over the weekend, the software giant cut the price of 20GB version of the Xbox 360 by $50 to $299. The company will also begin selling a 60GB version of the 360 at the original $349 price tag.
Analysts had expected Sony to hold firm on the PS3, which remains the most expensive gaming console on the market. Sony itself had broadcast the view that it did not plan to scale back the PS3 price, saying it planned to focus on keeping the PlayStation line profitable for the current fiscal year.
But at its press conference at the Shrine Auditorium in Los Angeles on Tuesday, Jack Tretton, who heads Sony Computer Entertainment America, placed heavy emphasis on the capabilities of the device, previewing several upcoming game titles such as "Little Big Planet" and "Resistance 2" that are designed to take advantage of the console's processing capabilities. He also scored the most noticeable reaction with a preview for a multi-player game called "MAG -- Massive Action Game" that will allow as many as 256 players to play in a single game.
"We've got the best combination of speed and value in the industry today," Tretton said. "Every month, the gap opens wider on what is possible on the PS3 and what is possible on other consoles."