Sony decided to cut the price of its PlayStation console, one day after the press reported that rival Nintendo saw sales surge thanks to a major price cut.
The sales of Nintendo’s 3DS portable console increased 5 times immediately after a 40 percent price cut became effective on Aug. 11 in Japan.
One day after Nintendo’s numbers were published, Sony announced it will drop the price of its PlayStation game console by 17 percent globally.
The 160GB Playstation will now cost $249 in the U.S., down from $299. In Europe and Japan, the console will cost 249 euros and 24,980 yen respectively.
The chief executive of Sony’s U.S. PlayStation unit said that historically the company has seen sales increases from price drops, so they expect to see the same in this case.
Sony is getting ready to launch PlayStation Vita, the new generation portable console which will be ready by the end of the year in Japan. Sony’s officials said recently they were not going to slash the launch price of the Vita, despite Nintendo’s decision to cut the price of its rival product 3DS.
Gaming console makers have seen price pressure rising in the last months, when consumers have reduced spending. Price cuts decisions are seen by analysts as natural in the game systems’ life cycle, which typically last four to six years.
U.S. competitor Microsoft, who makes the Xbox console, has not yet announced any price cuts.
Photo by Sean MacEntee