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Sony drops $50 Playstation 2 cut for $100 cut later

Makes more sense to time cuts closer to Xbox release

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Sony has dropped plans to cut the price of the PlayStation 2 by $50 or £50 (depending on territory) across the globe at E3. The current target for the aggressive price drop is thought to be September of this year.

Previously it was whispered that Sony would grab headlines at E3 by slicing $50 off the price of the PlayStation 2 in the US, and £50 in the UK and Europe. But now, reports in this week's MCV suggest that the consumer electronics giant will hold off until Q3 when it will unleash a massive $100/£100 reduction across the globe.

With the Xbox and GameCube coming along full steam for Q3/Q4, an aggressive price drop would put pressure on the competition to perform. Cutting the price now would do very little for the company, but by holding off until the Xbox is in full view, the company could do some serious damage. One analyst commented that the "still-scratchy inventory situation wouldn't respond well to a cut now". With increased inventory and competition online for September, Sony is "better off waiting".

Sony's presence at E3 is more likely to focus on software than hardware. Although the near-mythical PS2 broadband plans would be a fantastic thing to show off, it's difficult to say whether or not Sony will chance its arm with them unless significant steps have been taken with the infrastructure in the US.

On a related note, rumours this week suggest Sony is in talks with a UK cable provider about broadband over here - roll on E3 2001.

With a strong Dreamcast software line up bound to be on display, a hefty Microsoft presence and Nintendo's make-or-break GameCube display to compete with, whatever Sony does will have to be eye-catching. We await with glee the results of the next few weeks. ®

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