Sony introduces slimmer, cheaper PlayStation 3
PHYSICAL: Console to debut Sept. 1 priced at $299
By Jennifer Netherby -- Video Business, 8/18/2009
AUG. 18 | PHYSICAL: As many hoped it would, Sony introduced a cheaper and slimmer PlayStation 3 today. The PlayStation Slim will debut in stores Sept. 1 with a 120GB hard drive, a built-in Blu-ray player and a $299 price tag.
The new PlayStation 3 console will feature a 120GB hard drive.
Sony has video of the new PS3 on the PlayStation blog.
The new $299 price, down from $399, was announced by Sony PlayStation head Kaz Hirai in Cologne, Germany, ahead of the Gamescom conference. The player’s 120GB hard drive is larger than the 80GB drive in the current model.
Analysts expect the price cut to boost sales, and based on pre-orders this week, it seemed to be doing the trick. Amazon.com will only allow customers to buy one console per household, blaming “great demand” and “an effort to provide as many customers as possible with the opportunity to purchase” the new console. GameStop.com is limiting customers to two console purchases. Walmart and BestBuy are allowing multiple console sales.
The PS3 has lagged behind competing consoles, and more recently sales have been slowed by the recession. NPD reported that in July, PS3 sold 121,800 units, fewer than it did the same month the previous year. The Xbox 360 sold 202,900 units that month, making it the only console to show a year-to-date increase.
Even with the price cut, the PS3 is still more expensive than competing consoles. The Wii sells for $250, while the Xbox 360 is now available for less than $200.
The videogames industry suffered its fifth straight month of declines in July, with combined software, hardware and accessories revenue dropping 29% from the same month last year to $848.9 million, according to NPD Group.
Breaking down the results, software slipped 26% to $436.99 million; hardware, down 37% to $280.9 million; and accessories, off 12% to $130.97 million.
Year-to-date the entire games business has decreased 14% to $8.16 billion.
