PS3 Price Drop. Rumor or fact?

A new report published on Sunday alleges that Sony will release a new 40GB PS3 this holiday season for $399 in an effort to compete with stronger Wii and Xbox 360 sales.

Is a $400 40GB PS3 coming?

According to Ars Technica, an insider source has confirmed that Sony will drop the price of the 80 GB PS3 from $599 to $499 this holiday as previously expected. Additionally, the company will launch a brand new 40GB PS3 for $399 complete with a Spider Man 3 movie bundle.

The report claims that Sony will make clear this report/ rumor up at this year’s Tokyo Game Show later this month in addition to dropping the price of the PS2 to $100.

Sony declined to make a comment when contacted by Supervgx.

In the beginning of the PS3’s life, Sony offered a 20GB PS3 for $499 alongside the former 60GB. The company has since discontinued both of those models in favor of the current 80GB model which excludes full compatibility with PS1 and PS2 games,a move that has been said to save Sony $40 per sale.

Could this make or break Sony?

~Joshua Cummins~