Sony announced today that it is going to slashed the price of PlayStation 3 by $100.  Unlike its predecessor, Sony Corp could not get a momentum going with its sales of PS3.

The announcement coincides with the E3 Summit at Santa Monica, California.  With this version of Playstation, Sony decided to provide a high definition DVD player which brought the cost of the unit considerably higher.

I think it just makes perfect sense right now.  Microsoft mentioned that it has set aside $1 Billion to extend the warranty on the XBox 360s 3-RedLight-Syndrome defect.  This should give them a little push. 

Let’s see what Nintendo will come up this time.