Not to be left behind in the race, Sony announced a steep price cut of $ 100 for the PS3.
The announcement was made by Sony at the E3 Media & Business Summit. The launch of a new PlayStation 3 model was also announced.

The 80 GB new PlayStation 3 model is priced at $399 and replaces Sony’s current 80GB PS3 which retails at $499. Thus Sony is now actually providing double storage space when compared to the 40 GB PS3 which is presently being sold for $ 399. The new PS3 will include integrated Wi-Fi with a built-in Blu-ray player. However it is not backward compatible with PS2 games.

The announcement comes closely on the heels of the price cuts announced by Microsoft for Xbox 360. Sony has also announced that it will be introducing a new video distribution service for PS3 users to watch videos as well as download their favorite games. All eyes are now on Nintendo for its next move.