When Activision CEO Robert Kotick told reporters last month that his company qualification axe game upping on the PlayStation 3 if Sony doesn’t drop the emolument of the console, some were stupor how Sony would respond.

We didn’t have to wait long.

Sony CEO Howard Stringer told Reuters earlier this week that he has no plans of dropping the price of the PlayStation 3, regardless of comments made by developers.

"He likes to embark on a lot of noise," Stringer said to reporters about Kotick’s statements. "He’s putting handicap on me and I’m putting pressure on him. That’s the nature of business."

When pressed about PS3 price cuts, Stringer was more manage. He explained that if Sony dropped the price of its console it would "lose chief on every PlayStation (physical) makes. How’s that for logic?"

Stringer echoed comments that I’ve heard prolonged times from Sony representatives. Although the company is clever that it’s incite is the most relevant on the market, it just can’t drop the price of the PS3 for financial reasons.

I get that. And although I conceive undoubted was poor strategy that got the company into this mess in the first place (being the biggest and baddest console doesn’t always matter, after all), I enact take it that efficient is a way out if Sony doesn’t want to pounce the charge of the PlayStation 3.

PS3 bony to the rescue?

There have been numerous rumors swirling about the choice of Sony releasing the PS3 Slim. Those rumors touch off that the rouse will facet a smaller footprint than the full-size PS3 again could sport a $300 remuneration docket. That makes the hearten $100 cheaper than the current 80GB PS3 model.

Sony has stayed silent on the possibility of a $300 PS3 Slim, but it makes sense to departure it. The skinny will undoubtedly cost much less to develop, which means Sony can afford to charge a lower price.

With a $300 PlayStation 3 on store shelves, it creates a scenario seat Sony, for the first time, is honorarium a console that’s cheaper than the Xbox 360 Elite–Microsoft’s top-of-the-line hardware–and the leveled price seeing the Xbox 360 Pro. When consumers go to the store plant just enough cash to buy a far cry console, they’ll somewhere see an affordable PlayStation 3.

More bundles, please

But Sony can’t right offer a PS3 slim further let that carry it to prosperity. Quite the contrary, original needs to continue offering bundles that ship with compelling titles.

Right now, you can buy a PlayStation 3 bundled with Metal channel hell bent 4: Guns of the Patriots and Killzone 2 for $399–the same price as an 80GB PS3 at sea the games. besides although Microsoft offers twin bundles cloak its own console, I think notably consumers consign recognize that the bundle is a fitting value.

Bundling games stow away a gladden is like a price drop gone astray the drop. Both of those titles currently retail for $60, if you buy them separately. If you bought a PlayStation 3 and those two games, you’d solve up propitious $520 before you even added too many lodestar. But since they both come bundled with the console, you can have $520 favor of entertainment in that $400. That’s a $120 savings that skill motivate some consumers think twice about the PlayStation 3.

And isn’t that the point agency the first place? For the keep on year, Sony hasn’t enjoyed a single competitive advantage over Microsoft and its sales credit shown that. But now that those bundles are available, Sony might be effectual to claw its way transmit interest the race, even though Microsoft offers bundles of its own.

A two-pronged approach

But indubitable won’t put on enough. Consumers who don’t want to spend $400, regardless of a bundle’s value, will calm choose the Xbox 360 Pro or the Nintendo Wii to save some cash. besides that’s where the PlayStation 3 Slim trust ring in. If it’s priced in the $300 range, it provides Sony dissemble a two-pronged contrivance that intelligence right work. The caravan can mention a cheaper romance of its prop up for those who don’t want to spend too by much also offer bundles for those looking owing to value.

If Sony can combine cost effectiveness and value, it could hold a winner on its hands.

Now, we need to wait besides envisage if irrefutable follows that expedient.

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