Sony is already anouncing its first price cut for the Playstation 3 console. What is odd about this price cut is that it will only take place in Japan (sorry to get your hopes up) and is taking place before the console has even launched. The price cut will apply to the PS3 20GB version, bringing the price down from around $500 to around $425. Many people in the industry feel that the fact that this lower price is exclusive to Japan shows that Sony is worried about people gravitating towards Nintendo’s more affordable Wii console (Xbox 360 has very little penetration in Japan and is likely not a factor).

“It’s ridiculous to decide to cut the price before they start selling the PlayStation 3. They may cut the price again if sales don‘t go well” said Yoku Ihara, head of equity research at Retela Crea Securities, while speaking to Bloomberg.

At this point it is too early to tell how the launch of Wii will affect sales of the Playstation 3 but it is becoming obvious that Sony sees Nintendo as major compitition, at least in Japan. Though they have have been telling the public and press differently.

Evorgleb: It’ll be years before Sony can make money on this console. They are taking like a $400 dollar hit on every PS3 sold…and its still too expensive for the average gamer!