The price of the Sony PlayStation 3 was reduced recently from $249 to $199 recently at GameStop (NYSE:GME). Some observers have indicated that this $50 reduction in the price tag of the Sony PlayStation 3 may be due to the lower cost of the components for the Sony (NYSE:SNE) game console. After some time, the cost of producing components for game consoles go down, which would increase the profit margin of the company and give them the option to reduce the price of the device.
The recent reduction in the price of the Sony PlayStation 3 comes around eight months since its price was also reduced by $50. The latest $50 price reduction was for the 160GB model of the Sony PlayStation 3 and it remains uncertain if the reduced price tag will be permanent. However the game console is now available at a lower price tag of $199.
This latest reduction in the price of the game console is consistent with a statement made by an analyst who indicated that it will be necessary for the company to bring down the price tag of the Sony PlayStation 3 to allow it to compete with the game consoles being offered by Nintendo (TYO:7974) and Microsoft (NASDAQ:MSFT).
For the moment only GameStop has reduced the price tag of the Sony PlayStation 3 and other retailers have not yet brought down the price tag of the game console. The reduced price tag of the game console from Sony will also give buyers a copy of the Mortal Kombat Komplete or the Batman Arkham City free of charge.
The reduction in the price of the Sony PlayStation 3 may result to increased sales for the retailer even as some industry watchers did not really expect the price to go down. It may be possible for other retailers to follow suit and reduce the price of the game console if GameStop will opt to make the lower price permanent for the Sony PlayStation 3.
Aside from the reduced price tag for the Sony PlayStation 3, the retailer is also offering a promotion for the PlayStation Vita where buyers will get a free case and game with each purchase of the mobile game console.