Price-cutting and face-saving for the PS3

A little more than half a year after its launch, Sony has already cut a PS3 configuration, lowered the price of the former high-end, and introduced a new model with a larger hard drive and a free game. I’m sure the 60 GB PS3 will get a lift from dipping below the $500 mark. The 20 GB model didn’t fare well there, but that product missed key components such as the memory card reader, Wi-Fi and, perhaps most importantly, HDMI.

Now there is far less difference between the low-end and high-end configuration than there was last November. The incremental value of another 20 GB of disk space is more questionable so I expect that the new low-end will become the more popular model, signalling a reversal from the PS3’s launch. The real issue facing the PS3 is a dearth of compelling titles, so I don’t see the price cut so much as a strategic move per se but really more priming the pump for what Sony says should be a stronger holiday portfolio.

Let’s get ready to rumble.

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