Sony Unveils Smaller, Cheaper PlayStation 3

Sony cut the price of its PlayStation 3 by $100 today and introduced a sleeker but more powerful model, reports CNET. The PS3 Slim will sell for $299 when it's available Sept. 1. The new model is 33% smaller and much lighter, though it has a 120GB hard drive, up from the current version's 80GB. Sony is trying to be more competitive with Nintendo's Wii ($250) and Microsoft's Xbox 360 ($200 for a basic console).

"People were expecting this to happen," an industry analyst tells the Wall Street Journal. "(Sony) had to do something. This will bring some new customers to the fold, but they really now have to come out with some good, exclusive games." (More Sony stories.)