Sony to Cut PlayStation Price Amid Sega Threat

Sony Computer Entertainment America will announce today that it will slash the price of its PlayStation console from $129 to $99 and the price of a series of its most popular games from about $39 to $19.99 each starting Aug. 23.

Analysts had expected the nation’s No. 1 video game firm to drop the price of its best-selling PlayStation in time for the introduction of No. 3 Sega’s powerful next-generation console, the Dreamcast, on Sept. 9. Sony plans to release its PlayStation 2 at the end of next year.

“Historically, $99 has been the magic price point for expansion of console sales,� said Andrew House, vice president of marketing for Sony Computer Entertainment. “We’ve managed to broaden the marketplace to an older audience, and now we’re looking at other untapped markets.�