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The word you're looking for is: FINALLY. Sony America finally gets their damn head in the game to sell some PS3s with a new ad campaign for this holiday. Sony Senior VP of Marketing and PSN Peter Dille wrote a long love letter on Sony's blog about the plan with this holiday's marketing. "Last year, we launched the PS3 with a campaign that become known as the 'White Room' and we received a strong reaction to those ads for being provocative and demonstrating the PS3's power," Dille wrote, obviously unaware of the extreme delusion in that statement. "With those technology messages now firmly embedded, we wanted to move beyond the 'power' message with a more high-energy, entertainment driven focus for the PS3. The games are here, the price point is now $399 and we wanted to make the news loud and clear."

The 30 second spot (above) focuses on the exclusive games for the console. And in a shocker for Sony, they actually show the games in the ads. After the break is the 60 second spot focusing on the PS3's features. Now we wait to see if new consumers notice the lack of backwards compatibility in their new $399 PS3.

MCV reports European tracking firm Chart Track informed them that the PS3 has seen a 178% increase in sales recently. They reached this conclusion calculating the "week-on-week PS3 hardware sales" following the introduction of the 60GB bundle and the new 40GB unit. It sounds like some fancy math is going on there, but we'll take any good news on the PS3 at this point.

Chart Track says the introduction of the 40GB PS3 created the third largest hardware sales week for the system behind the console's first two weeks on sale. Software sales also increased as Resistance: Fall of Man jumped the charts from #22 to #8. Heavenly Sword and Motorstorm also saw increases. It appears Sony is finally getting the PS3 into a price range consumers are comfortable with.

With all the 60GB PlayStation 3s out of the warehouse and finding homes, it's time for the analysts to say that the 80GB PS3 will drop to $499 (duh) -- this year (wha?). Both Wedbush Morgan analyst Michael Pachter and -- please sense the Alan Rickman octave change -- simExchange analyst Jesse Divnich, believe there will be a price cut for the 80GB model before Jesus' birthday.

The analysts go on to say what you can probably just guess. Unless Sony wants to eat a huge helping of "we are total jerks," they'll have to drop the 80GB price to remove the clearance sale tag their 60GB model has been stuck with since the PR nightmare during E3 week when they announced the price drop and followed it up on Friday by announcing a discontinuation of the 60GB model. It's all about the timing now. When will the 60GBs be gone? Who's buying them with this second price drop ready to pop out? We know it has to happen for the sake of PR.

PC World reports all the 60GB PS3s are out of the house and looking for a home. Sony's Dave Karraker confirms, "We no longer have any inventory in SCEA warehouses. All inventory has been purchased and shipped to retailers." So, if you still want a PS3 without limited backwards compatibility, here's your last chance. Once the 60GB sell out, that's all she wrote.

Now, we have to ask, was it all a clearance sale or will the 80GB drop down to the $499 price once the channel is cleared? Karraker says, "We won't be making any further announcements ... until the 60GB model is exhausted and market conditions are evaluated." Place your bets if it'll be before or after the holiday. Whatever it takes to build that install base at this point.

[Thanks Marcus]

The PlayStation 3 price rollercoaster reaches another peak today as Game Informer puts the rumour out there that a new 40GB SKU is on the cards. The price? $399. We've also heard ourselves that this has been in the planning stages for a number of months. When asked for confirmation, Dave Karraker stonewalled us with the following statement: "We won't be making any further announcements regarding our PS3 model hardware strategy in North America until the 60GB model is exhausted and market conditions are evaluated."

It's clear, then, that we won't be seeing any new price drops or SKUs hit the market until the 60GB PS3s are sold out. Once that happens, as Pachter said, we'll see the 80GB system drop down to the price of $499. If not, we'll see a new 40GB SKU come in at a price of $399. There's no reason why both of these things couldn't happen, but we're not convinced that's the case.

Since the rollercoaster started, we've been saying that the problem Sony is facing is that people can't afford the PS3, not that they won't buy it. A $399 ticket to the PS3 party would be excellent, especially if it were to start before the Christmas buzz hits. However, all this price craziness is making things confusing for potential buyers who keep up to date with PS3 news. Once the mainstream have bought out all of the 60GB models (All 2 to 3 million of them; It could take a while) we'll see something happen.

We just felt Europe's pain. Sony has announced that they will not be cutting the price of the European PlayStation 3 and they will not be offering the 80GB PS3 at this time either. To compensate, Sony will offer a "starter pack" at the respective countries current price. For example, in England, the £425 PS3 will allegedly have an extra £115 of content included as well. No word yet on what that will be.

So, um, yeah. There's speculation of a second price cut in the States before the end of the year and Europe just can't get any love. Hey, at least for this they've got universal healthcare, good cheese, cheap wine ... we're just trying to find the silver lining in this. Sorry.

[Thanks GiantHaystax]

MaxConsole.net is reporting that they have received news of a new bundle for the European region. The "PlayStation Starter Pack" will allegedly contain a 60GB PS3, Resistance: Fall of Man, Motorstorm and two controllers for the "no-changes-there" price of €600. Those hoping for a price drop may be disappointed. Technically. Though if you think about it, you're essentially getting the 60GB and controller for €430, after deducting the price of the games and extra controllers.

Sounds like an ok deal to us, though it doesn't help the people who just can't afford that sort of money. It might push a few fencesitters over the edge, though. We'll keep you updated with SCEE's planned announcements as and when they happen. Price information aside, we're hoping for some juicy PSN news. We've heard rumblings.

Bloomberg is quoting Microsoft Game Studios President Shane Kim as saying that his company needs to lower the price of the Xbox 360 to attract more consumers. "We need to compete effectively for that customer and part of that is getting to the mass market price point for the console. We definitely are working on that area.," Kim told the financial news site.

The article gives no indication of when or how much the reduction will be, so this is pretty much just confirmation that the price cut we all know will happen eventually will ... happen eventually. Still, it's nice to know that some Microsoft higher-ups are paying attention to the issue.

We know an announcement is coming from SCEE this Thursday that is "related to the US price cut", but SmartHouse News claim that they already have the scoop. Michael Ephraim, Managing Director of Sony Computer Entertainment Australia has reportedly confirmed that PAL regions will be seeing a price cut of "as much as 17%".

While this is potentially great news, and 17% would bring the PS3 down to a much friendlier price of £350 in the UK (making it the cheapest Blu Ray player available), we're not going to hold our collective breath. One way or the other, we'll know on Thursday.

[Via NeoGAF]

Konami executive Kazumi Kitaue, head of Konami North America and European ops, dropped a bombshell today saying that Metal Gear Solid 4 may move to other consoles in an attempt to recoup development costs. He also said the PS3 price drop may not turn the ship around. The natural assumption, given the console hardware technology, is that Metal Gear Solid 4 will see its day on the Xbox 360, destroying one of the final feathers in Sony's hat of exclusives.

In regards to the PS3 price cut, Kitaue unleashes the backhand with quickness. "I don't expect a substantial impact ... with $500, you can buy a person computer," Kitaue told Reuters. It's been surprising to see the mainstream media pick up on the $100 price drop without acknowledging that there is a new "better" model at the same price which caused all the calls for a price drop in the first place.

But for gamers, the first acknowledgment that Metal Gear Solid might find its way to other consoles is what's really going to shake things up. Kitaue says, "Since Metal Gear Solid was born for the PlayStation, we would like to keep it a PlayStation game. But we might have to take some steps." Whether those steps are announced this week or if this is some last ditch effort by Konami to force Sony to pony up exclusivity cash, which they say they do not do, is worth wondering about. If MGS goes to the Xbox 360 ... well, all eyes will be on Final Fantasy XIII as the last famous third-party man standing.

It already looks like the price drop for the PlayStation 3 is having an effect on sales. After official confirmation of the price drop, sales at Amazon.com for the 60GB PS3 have spiked by 2800% and have overtaken the Wii and Guitar Hero: Rock the 80s as the best selling item in the Video Game category.

While it's hard to judge the success of the price cut in only one day, it's interesting to see how many people are snapping up the new $499 PS3. A price cut of $100 is not insignificant but the PS3 is still the most expensive console, and industry watchers were curious to see just how many people would be moved to purchase the console after a 'mere' 17% price drop.

Judging from the early evidence though, the answer is 'a lot.'

[Update - Sony has since issued a press release, confirming this report once and for all.]

According to a syndicated Associated Press report, Sony has confirmed that the 60GB model of the PlayStation 3 will receive a $100 cut in price, effective as of Monday. Bizarrely, Sony is unwilling to leave a $499 model to fend for itself in the retail world and will be introducing another PS3 SKU at the universally loved $599 price point -- one bolstered by an 80GB hard drive and a copy of gratuitously grimy racer, MotorStorm. The more expensive model is due for release in North America this August.

We've contacted Sony for comment.

[Via Engadget]

Has the price cut already been put into effect? Potentially, yes. One of our readers has let us know that he was able to get his hands on a 60GB PS3 for no more than $499.99 at a Target today. In our attempts to verify this we called the store he bought it from. They confirmed that the 60GB PS3 was, indeed, in the shop's system at the price of $499.99. Whether this is an error on the individual shop's part, with the price drop being put into effect early, we weren't sure.

We are currently in the process of calling more stores nationwide, to see how isolated this event really is. We will update this post as and when we get more information. If true, then this is an excellent start for what promises to be an excellent E3. Already Microsoft's keynote is overshadowed by Killzone 2. A pricedrop by Sony before the event even starts only adds to the pressure.

[UPDATE 1] A Kansas Target has the 60GB PS3 in its computer at $599

[UPDATE 2] Another tipster has told us that today they sold two at Circuit City at $499. Confused, the manager called it in and got a confirmation that it was correct. We are in the process of verifying this.

[UPDATE 3] A Target store in Rancho Cucamonga in California has confirmed that the 60GB PS3 is in their system for $499. It looks like there's no pattern to which stores are and aren't offering the price cut.

[Thanks Nathan and Alexander!]

If the recently rumored $100 price cut for the PS3 turns out to be true, it will end the era of one of the most controversial pricing moves in the history of consumer electronics.

The writing was on the wall early on, with former SCE President Ken Kutaragi hinting way back in July 2005 that he hoped gamers would "work more hours to buy [a PS3]." When the price was officially announced at Sony's E3 2006 press conference the first wave of ridicule was practically immediate. Kutaragi's comment that the price was "too cheap" for what consumers were getting just stoked the fires, leading at least one Joystiq blogger to call the company "out of touch." Hey, $599 is pretty cheap if the thing is made of uranium.

Yet by launch time there were some signs that the high price wasn't really a deterrent. Despite some launch window reviews saying the system "just isn't worth it yet," the initial stock of PS3s sold out to mobs of fans who waited in the November cold to drop up to six Benjamins on a game console. Many of those who managed to get one of the limited initial allotment put them up on eBay, where some fetched ridiculously inflated prices. Maybe $600 was a bargain after all.

Over at Cheap Ass Gamer there is a forum regular by the name of Speedy1961 who regularly posts early pre-release leaks of ads from Circuity City, Target and Best Buy. He's been doing it a long time and appears to be extremely reliable. And he just released the information on the Circuit City ad for the week following E3 and guess what appears? The oft rumored 100 dollar price cut on the PS3.

People have been calling for a price cut since immediately after last year's E3 and their voices have reached a deafening crescendo recently, so it is by no means a big surprise that Sony would drop the price. Unfortunately, this is still going to be filed under the 'Rumor' category because of the lack of hard evidence. Some supposed scans have shown up on the net, but they're a bit dubious. Also there is confusion over whether or not this is a permanent price cut. It seems absolutely insane that it wouldn't be; a temporary price cut (one week) would just aggravate things. We'll find out next week for sure though!