In a move placing the Japanese version of its much-anticipated game console a tad closer to the cost of offerings from competitors Microsoft and Nintendo, on Friday Sony announced a lower price for the low-end model of its PlayStation 3.

Nintendo

Sony Computer Entertainment CEO Ken Kutaragi revealed during the 2006 Tokyo Game Show that Japanese consumers will be able to purchase an entry-level PS3 for 49,980 yen ($430) when the system launches in Japan on November 11. The cut is a 20 percent drop from the unit’s former price of 62,790 yen. Sony did not announce price changes for the U.S. and European versions of its consoles, set to start at $499 and €499, respectively.

Microsoft currently sells its Xbox 360 console in Japan for as low as 39,795 yen. Nintendo’s Wii console, set for release in Japan on December 2, will retail for 25,000 yen. U.S. versions of the Xbox start at $299, while the Wii will retail for $249 when it hits the United States on November 19.

Sony added that worldwide versions of the low-end PS3 will also now feature a high-definition multimedia interface (HDMI). The port was previously only available on the more expensive version of the PS3, priced at $599. “Given the sharp increase in availability of flat displays supporting HDMI in the market, [we have] decided to equip HDMI as standard on all PS3 systems,” Sony said in a statement.

Given the sharp increase in availability of flat displays supporting HDMI in the market, [we have] decided to equip HDMI as standard on all PS3 systems,” Sony said in a statement.

Tough Crowd

Since the initial release of specifications and pricing information for the PS3, analyst reactions have been mixed. Many have questioned the company’s decision to pack the system with so many expensive components—including a Blu-ray player for playing high-definition movies and the powerful Cell processor developed in cooperation with IBM and Toshiba—while others have blasted Sony outright for a PS3 strategy dubbed a “golden opportunity” for competitors (see Sony’s PS3 a Sitting Duck?).

Sony’s PS3 a Sitting Duck?

The PlayStation 3 has also been hit with a number of delays, causing the company to push back the console’s release date multiple times (see Sony Delays PS3 in Europe and Sony Delays PS3 to November).

Sony Delays PS3 to November

Still, analysts continue to side with the company. Sony shipped over 100 million PlayStation 2 systems, a figure more than twice the combined shipments of rival consoles from Microsoft and Nintendo (see Sony PS3 to Frag Xbox?).

Sony PS3 to Frag Xbox?

“You can make the argument that the PlayStation is the most successful consumer product of all time,” said In-Stat Analyst Brian O’Rourke. Nonetheless, he admits to revising his own shipment forecasts since March, when he predicted Sony would have 50 percent of the market for next-generation consoles by 2010. “I think Sony will ship the most consoles in the next generation, but barely,” he said, without giving specifics.

“You can make the argument that the PlayStation is the most successful consumer product of all time,” said In-Stat Analyst Brian O’Rourke. Nonetheless, he admits to revising his own shipment forecasts since March, when he predicted Sony would have 50 percent of the market for next-generation consoles by 2010. “I think Sony will ship the most consoles in the next generation, but barely,” he said, without giving specifics.

Contact the writer: ROlson@RedHerring.com

del.icio.us

Digg this

Slash it