Playstation 3 Price Drop In Japan

From CNN...

TOKYO, Japan (AP) -- Sony Corp. said Friday it will slash the price of its much-anticipated PlayStation 3 video game console in Japan by 20 percent, heating up the competition in the next-generation gaming war against rivals Microsoft and Nintendo.

The announcement comes just days after Microsoft Corp. announced that it would roll out an external high definition DVD player for its Xbox 360 in an effort to match the PlayStation 3, due to be released in November with its own Blu-ray DVD technology.

Sony Computer Entertainment President Ken Kutaragi, speaking at the Tokyo Game Show in Makuhari, just east of Tokyo, said the move was in response to consumer complaints the upcoming console was too pricey.

Sony will cut the price of its basic PlayStation 3 model in Japan to 47,600 yen (US$410; euro322), from an originally planned 59,800 yen (US$515; euro404.52). That puts the PlayStation 3 in the same range as the combined basic Xbox 360 and HD DVD player in Japan, where the duo will sell for 49,600 yen (US$427; euro335.40).

The decision could give Sony a badly needed boost at a time of embarrassing delays for the highly anticipated upgrade. Rival Nintendo Co. is also scheduled to release its next-generation Wii gaming system by year's end, while Xbox 360 has been selling in Japan since December 2005.

PlayStation 3, initially planned for earlier this year, has been postponed twice. Sony now expects to ship only 2 million units by year's end instead of an original projection of 4 million.

In Japan, it will hit stores on November 11. Sony spokeswoman Nanako Kato said there were no plans to lower prices in other markets.

The game will go on sale in the United States on November 17 at US$499 for a 20 gigabyte hard drive version and at US$599 for the 60 gigabyte version. In Europe, they will be priced at euro499 and euro599 respectively, but they won't go on sale until March, four months later than planned.

The price cut affects the basic PlayStation 3 model, which comes with a 20 gigabyte hard drive. Another upscale version of the PlayStation 3 will have a 60 gigabyte hard drive, but Sony is leaving its pricing to retailers.