Sony cuts price of PlayStation 3

Sony has cut the price of the PlayStation 3 by $100 in the United States this morning in a move that should boost the console's lacklustre sales.

The PlayStation 3, which includes a 60-gigabyte hard drive and a Blu-ray high-definition DVD player, will now cost $500, or $20 more than the most expensive version of Microsoft's Xbox 360.

The PS3 still costs twice that of Nintendo's Wii console, whose $250 price and motion-sensing controller have made it a best-seller despite its lack of cutting-edge graphics and hard disk.

"Our initial expectation is that sales should double at a minimum," Jack Tretton, chief executive of Sony Computer Entertainment America, said.

"We've gotten our production issues behind us on the PlayStation 3, reaching a position to pass on the savings to consumers, and our attitude is the sooner the better."

The price drop was widely anticipated by industry analysts despite Sony President Ryoji Chubachi saying last week that the company had no immediate plans for one.