Sony Announces Cheaper and Slimmer Playstation 3

Sony has announced they will be releasing a slimmed-down version of their Playstation 3 gaming console, called, "Playstation Slim". The new 120GB version of the console will be priced at $399 while the 80GB version will go for $299. Sony plans to release the Playstation Slim worldwide on September 1st and has already cut the price of the older 80GB system down to $299.

Rumors about the new console were swirling on Tuesday after K-Mart accidentally posted an ad on their website advertising the price cut of the old PS3 and left much speculation about an upcoming new Playstation console. The Slim will possess the same functionality as the old system but according to Sony Computer Entertainment CEO Kaz Hirai, the Slim will be 33% smaller and 36% lighter. It will also use 34% less power than its bulky brother. The Slim will only have two USB ports however. One small new feature that the Slim has is that if you connect it to a Bravia HDTV you can operate the system's XMB through your Bravia remote. You also will no longer be able to install other Operating Systems on the Playstation Slim. Sony has been known for "slimming" down its gaming consoles after they did it with the Playstation 2 and also recently with the PSP portable gaming device last summer.

Sony has struggled selling their powerful gaming console since its release back in 2006 and it lags in sales behind Microsoft's Xbox 360 and the Nintendo Wii. Only 24-million Playstation 3's have been sold compared to 52.6-million Wii's and over 30-million Xbox 360's. Most experts believe this is due to the high cost of the Playstation 3. The Wii retails at $249.99 and the least expensive Xbox 360 sells for $199.99. Sony hopes this price cut will help them catch up in the console war and help put them on top like the Playstation 2 did for them in the early 2000's. Andrew House, the president of the Sony's gaming unit in Europe has stated, "This will help us deliver on our sales goals, and help us really compete very aggressively with our competitors." The PS3 is coming off a two-year low in total shipments so the price cut does not come as much of a surprise as Sony is trying to recoup costs and finding ways to meet their original sales goal of 13 million consoles shipped worldwide.

Source: http://www.bloomberg.com/apps/news?pid=20601103&sid=a_bsF7nFvuiY