The 40GB Playstation 3 retails for about $699 in Australia.

Sony plans to phase out the smaller hard drive console and make the 80GB version its mainstay model as it focuses on turning the Playstation 3 into a home entertainment hub capable of storing downloaded movies and games, it said.

The announcement comes after Microsoft this week cut the price of its best-selling Xbox 360 Pro model game console with a 20GB hard drive by $US50.

Microsoft also introduced a new Xbox 360 model with a 60GB hard drive.

Mr Tretton said the Playstation 3 was "well on its way" to reaching Sony's goal to sell 10 million units in the year to March.

The Japanese electronics and entertainment conglomerate also said it would launch its video game operations in South America this year as it aims to expand its game business outside established markets in North America, Europe and Japan.

The company is also on target to meet its goal of selling 15 million units of its PSP in Sony's business year ending March 31, 2009, Mr Tretton said.

In comparison, Nintendo aims to sell 25 million units of its Wii console and 28 million units of the DS portable game gear during the year.

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another price cut? won't they lose more money?

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Who knows.

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Quote: from whoami111 at 2:38 pm on July 19, 2008

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another price cut? won't they lose more money?

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Who knows.

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Sony

But companies don't just dish out pice cut without riskassesment

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Doctor who - Wibbly Wobbly Timey Wimey!
used to show time travel's effects.

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another price cut? won't they lose more money?

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Sony does more than make playstation 3's, in case you forgot.

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We must become the change we want to see in the world
- Mahatma Gandhi

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another price cut? won't they lose more money?

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Not really, hard drives are pretty inexpensive.  It's been about a year since the 40gig dropped so 80gigs of memory probably costs what 40 did then.

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Quote: from whoami111 at 11:38 am on July 19, 2008

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another price cut? won't they lose more money?

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Not really, hard drives are pretty inexpensive. It's been about a year since the 40gig dropped so 80gigs of memory probably costs what 40 did then.

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That only reinforces that they will be losing more for each unit sold though... it's not like they've reduced the production costs any.

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When they leave me, they're all smiles.
When they leave you, they're in tears.