Late last week there was a lot of chatter going on that Sony was going to be dropping the Playstation 3 price. A Circuit City add for the week of July 15th displaying the PS3 at a decently reduced price gave further indication that it was coming, but Sony never confirmed it, and in fact they denied it.

It’s funny how often rumors end up being true, as is the case with the PS3.  Starting today, the price on the 60 GB model will be slashed from $599 to $499, a 16.7 percent reduction. To me, this is an act of desperation to try and snatch a better portion of the market than what they currently have. It’s no secret that sales of the PS3 have been extremely sluggish which has left them in third place behind the Nintendo Wii and Microsoft’s Xbox 360.

This YouTube video makes a good point… did Sony already kill the Playstation Brand? Is it too late?

Considering that the Wii and the PS3 were launched around the same time, and Sony has sold 3.6 million consoles while the Wii has sold 6 million, I’d say Sony has a lot of catching up to do. They’ve also set a hefty goal for themselves will plans of selling 11 million consoles during this current fiscal year.

While the PS3 with the recent price drop still remains more expensive than the Xbox 360 and the Wii, they just might be able to increase their sales and snatch some of the “would-be” Xbox 360 owners who are now skeptical of purchasing a console with the recent announcement from Microsoft that they’ll be spending approximately 1 billion on Xbox 360 repairs due to hardware failure.

All I have to say is good luck Sony, hopefully it’s not too late.

Source: Associated Press