In an evident attempt to give the gaming console industry a boost ahead of the holiday season this year, Sony Corp has announced a reduction in the cost of its basic PlayStation 3 (PS3) console in the US, Europe, and Japan.

As a result of the price cut, the 160GB version of the PS3 will now cost $249 in the US, down from $299; and the price of the larger-storage 320GB version of the console – which is the key competitor of the Nintendo Wii – will now be $299, versus the original price-tag of $349.

Meanwhile, the post-reduction cost of the 160GB PS3 in Europe now is 249 euros, as against the original cost of 299 euros; and that of the 320GB version now is 299 euros, rather than 349 euros.

In Japan, the price of the 160GB version of the PS3 has been slashed to 24,980 yen from 29,980 yen; and that of the 320GB version has been reduced to 29,980 yen from 34,980 yen.

According to retail research firm NPD, the price-reduction move by Sony – an announcement that has come one week after sales for new games suffered their lowest month in nearly five years – may help publishers like Electronic Arts Inc, retailers and makers of video game accessories; as well as help the company regain some of its lost ground from its main rival Microsoft.

About the PS3 price-cuts, Andrew House - president and CEO of Sony Computer Entertainment Europe – said: “Our strategy is to provide the best quality entertainment experience at accessible prices.”