On Tuesday, Sony announced a PS3 price drop. The drop will lower the price of the Playstation 3 Slim console to $249. The new price will take effect immediately.
This marks the first PS3 price drop since Sony released the Slim model of the console for $299 in 2009. The new price brings Sony closer to Microsoft's Xbox 360, which ranges from $199 to $399. The move also cuts the distance between the Playstation 3 and the $149.99 Nintendo Wii console.
The announcement came at the Gamescom trade show in Cologne, Germany. Gamescom runs until August 21st, so more blockbuster announcements could be on the way.
The PS3 price drop puts pressure on Microsoft and Nintendo as consumers move toward the holiday season. While Sony's price is higher, the console includes a Blu-ray player, making the Playstation 3 an attractive value. The Wii price drop just happened in May, making it unlikely that Nintendo will drop their price again soon. The Xbox 360 price has been the same since the Slim model's introduction in June 2010. It's possible Microsoft could lower their price if Sony's move cuts too far into their market share.