Just as it was rumoured, at Gamescom, Sony has cut the prices by $100 for 80GB PS3 to $299 and 160GB model to $399 from $499.

The price cut was inevitable with Microsoft and Nintendo reducing the prices of their console periodically making Sony models look twice as costly. Recently Microsoft phased out Pro console which made their line-up look cheaper.

Another thing to be noted is that this models with reduced models are not PS3 slim, but the old models of PS3. Some suspect this of being a clearance sale despite the fact that PS3 slim was launched. Yet another of the shrewd pricing tactics from Sony?

Sony has a history of pricing up their goods despite bringing down the production cost. Their latest, PSP GO according to many sources is much cheaper to produce but is priced almost as costly as an Xbox360. The previous avatar of PSP was selling for around Rs9.5K in India.

SLIM LAUNCHED

PS3 slim meanwhile will be available from September and the 120GB version of Slim will be selling for $299, the price at which the old 80GB model will be sold at. So will you wait for a month or two more and buy a Slim or jump the gun and buy a cheaper model of the bulky PS3? You decide

HOW ABOUT YOU NINTENDO?

Now that MS cut the prices and Sony followed, it’s Nintendo’s turn to cut prices. Their console Wii now sells at $250 while Arcade sells for $200. With competition edging closer Nintendo has to make their low spec console much cheaper or else juice it up, make it HD compatible and re-launch it.