• The Wall Street Journal (subscription required), Monday, September 25, 2006 12:15 PM

Responding to criticism that it was too expensive, Sony announced Friday it was cutting the price of the ambitious PlayStation 3 game console, due out Nov. 17, by 20 percent in Japan. The move was the latest setback for a product that Sony hopes will not only do well on its own but also spur sales of the company's HD movies, fast-action video games and HD television sets. The unit's launch already had been postponed from the spring. And two weeks ago, citing manufacturing difficulties, Sony delayed the launch in Europe until March and halved its shipment target for this year to the U.S. and Japan. These developments could give Sony's rivals--especially Microsoft but also Nintendo--a crucial opening in one of the most heated battles in technology and entertainment. Due to PlayStation 3's advanced electronics, the console will cost $499 in the U.S., compared to the Microsoft Xbox 360's $300 and Nintendo Wii's $250. The price won't deter hardcore players, but it may hurt PlayStation 3's chances of attracting a wider audience--possibly forcing it to make more price cuts early on to ensure that game developers continue to make their best games for the PlayStation. Early this decade, the PlayStation 2 grabbed more than 70 percent of the market for the previous generation of game consoles, but it's hard to imagine the brand dominating as it has in the past.

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