MisterWebNet

Sony has unveiled its new slimmer version of its PlayStation 3 - and slashed prices on all of its consoles.

No big surprise there! Sony recently reported results that show a loss of 19.2% in its operating profit. In real terms, that translates to $268 million - over quarter of a billion.

It had been predicted that consoles and games would weather the economic downturn better than other consumer products. But the gaming world has tumbled along with the other sectors of the economy and now producers are having to come up with new strategies and products to grab consumer interest.

The big story here is the slashing of prices. Forget the slimmer version of the playstation. Its only features to  boast of are a reduction in space usage of 33% and it uses over a third less power - 34% to be precise.

In launching the console, Sony also announced that the price of the two current PS3 models would be lowered by $100. The 80 GB model could be bought for $300, and the 160 GB version for $400.

Sales of the Playstation have been lagging behind the xBox and the Wii.  With the latest price cutting, Sony has now matched the price of the xBox 360. Both consoles are still dearer than the Nintendo Wii - but they are also more powerful consoles.

It will be interesting to see if the price cuts boost demand for the playstation. All console makers have reported reduced sales, so simply cutting prices to match Microsoft, itself expierencing slower sales, may not be enough. The Gaming industry as a whole reported lower sales for the fifth consecutive month in July and it does not look like turning around any time soon. Cheaper consoles please!