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.

Sony (NYSE:SNE) and Amazon (NASDAQ:AMZN) recently launched the Amazon Instant Video application for the Sony PlayStation 3. This application offers users of the game console access to television shows and movies through the Instant Video service of Amazon.

Sony PlayStation 3 users will have access to over 120,000 movies and television shows