Sony has cut the price of its current game console, the PlayStation 2, by 13 percent, lowering the suggested retail price from $149.99 to $129.99 as it prepares to release the next generation, the PlayStation 3, later this year.

The price cut announced Thursday should help the Tokyo-based company stay in the game after Sony said last month the PS3 would be delayed, mainly because of problems with the Blu-ray high-definition DVD technology it plans to include in the system (see Sony Delays PS3 to November).

Sony needs to sell more units of the PS2 to combat sales of Microsoft’s Xbox 360, which the Redmond giant launched late last year, as well as Nintendo’s Revolution console, which is also slated for release late this year.

The company also needs to clear out its inventory of the old game consoles to make way for the next generation. Some analysts were expecting the price to drop to under $100, but Sony has not elected to go that low yet, at least not until the PS3 starts shipping.

“We do not think the cut will materially drive sales volume for hardware/software; $99 would have had a more significant impact on demand,” wrote Citigroup analyst Elizabeth Osur in a research note.

Shares of Sony rose $1.34 to $52.10 in recent trading.

Sony said it has shipped more than 101 million PlayStation 2 units and approximately 1 billion pieces of software for the PS2. The company also noted that the NPD Group ranks the PS2 as the leader in market share among game consoles, with 55.6 percent of the market in the United States.

“Now even more consumers, as well as casual gamers, can experience what the PlayStation 2 has to offer… at a new value price,” said Kaz Hirai, chief executive of Sony Computer Entertainment America in a statement.

The company plans to promote the new pricing in newspaper and online ads to attract more gamers and potential gamers.