August 17, 2011

Sony Lowers Playstation Price To $249

In an effort to spur sales in a lagging video game system market, Sony Corp. announced it is cutting the price of its Playstation 3 to $249.

The last time Sony cut the price of the Playstation 3 was in 2009, when a lighter, slimmer model of the video game system was released. The price cut should boost sales, like it did in 2009.

Sony announced the plans for its 5 year old game system on the heels of rival Nintendo Co. announcing a price cut for their new Nintendo 3DS three-dimensional handheld game system. On top of that, game systems are competing with the iPhone and other smart phones with popular games such as "Angry Birds."

Sony has plans to launch a new handheld Playstation called the Playstation Vita in the US early next year. The cost for the Vita will be $249 for a Wi-Fi only version, while another version with cell phone service will cost $299.

Jack Tretton, the CEO of Sony Computer Entertainment America, said Sony is cutting the price in August so they can attract the back-to-school shopping season. While the holidays are the busiest time for video games, August and September are also lucrative as college students stock up on games for their dorm rooms.

According to Tretton, 50 million Playstation 3 consoles have been sold worldwide since its initial launch in 2006. Sales of the Microsoft Xbox 360 reached 55 million as of June, according to Xbox Live programming director Major Nelson, and the Nintendo WII tops worldwide sales of game systems with over 86 million sold as of last April, according to Nintendo estimates.


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