The tanking global economy means especially hard times for purveyors of entertainment gadgets.

This past holiday season was the most disappointing retailers have seen in decades and manufacturers are struggling to move inventories and keep plants open. Sony, in particular, is in the midst of a major (voluntary) restructuring exercise which aims to save the company (US)$1.1 billion this year.

So, it’s not surprising that rumours are circulating about significant price cuts on the most dispensible gadgets going: digital game consoles.


Industry analysts expect Microsoft (MS) to drop the price of its Xbox 360 by at least (US)$50 late in Q2 of this year, putting the price of the basic unit at around (US)$250.

Even more drastic cuts are expected on the Sony PS3 which, at around (US)$400, is currently the costliest of the big three. Word is circulating in ‘usually reliable blogs’ that the 80 GB PS3 will be cut by (US)$100 early in Q2, making it more competitive with the Xbox, but still more expensive, if the MS price cut comes through around the same time.

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