Sony's PS3 "price cut"

So now Sony is going to replace the recently discounted $499 60 GB model with an 80 GB model that includes a game and costs $100 more?

Let's forget for a moment the confusion caused by multiple contradictory announcements from different and apparently reliable company representatives last week during E3. What factors go into the thought process of deciding to actually maintain a $599 price point for a game console? I'll tell you what: arrogance and a disconnection from consumers.

I hear and even understand the argument that the PS3 includes a Blu-Ray high definition DVD player as a reason for a higher price, but now that stand-alone Blu-Ray players no longer cost $1,000 (even Sony sells one for less than $500) this argument simply doesn't hold water.

Yes, the PS3 has a lot of potential, but that potential has to do with playing games and when those games simply don't exist there is absolutely no reason to lay out that much cash.

The home electronics market looks much different than the one that existed when the PS2 was released and standard-definition DVD movies were just taking off as a format. The "PS2 is also a DVD player" argument worked then because you could realize all of the benefits of DVD without buying a new TV. Now, in order to fully realize the benefits of high-definition DVD movies you need not only a new player, but a new HDTV also. For a decent HDTV you're talking an additional $750 to $1,000 for even a basic setup.

Put simply, HD-anything is not a mass-consumer product category yet.

This may be a smart way to clear the shelves of the now-discontinued 60 GB PS3 inventory, but as far as public relations goes, this comes off poorly.

Gaming site Next-Generation takes a more positive view on the price than I do, but they hit the nail on the head with the consumer confusion caused by, and the corporate miscommunication and confusion evidenced by, the conflicting announcements.