Sony to cut Playstation 3 prices

Sony’s game unit said today that it will cut the prices of its next generation PlayStation 3 game consoles in Japan next week, and offer a new low-range model in November.

Sony Computer Entertainment Inc will cut the price of its model with 20 gigabytes of hard disk memory by about 10% to 44,980 yen (€274) from the current 49,980 yen (€304), with effect from October 17, the company said in a statement posted on its website.

The company has globally sold more than 5 million units of the PlayStation 3 since it went on sale late last year in Japan and the US, and in March in Europe.

Sony once dominated the gaming industry with PlayStation 2, predecessor for the PS3, but it now faces intense competition from Microsoft and Nintendo.

Microsoft has sold 11.6 million Xbox 360 machines in the last two years, and Nintendo has sold 9.3 million of its popular Wii since late last year.