Sony cuts PlayStation 3 price by $100

Sony Corp. slashed the price of its current PlayStation 3 by $100, or 16.7 percent, and introduced a high-capacity model in an effort to spur sales of the struggling video game console.Starting Monday, the current 60 gigabyte model will cost $499, down from $599.

Son

And announces new $599, 80 GB model coming in August

The Japanese electronics maker also said it is introducing a new version of the PlayStation 3 with a bigger hard drive for storing downloaded content such as video games and high-definition movies.

The PlayStation 3, which includes a 60-gigabyte hard drive and a Blu-ray high-definition DVD player, will now cost $499, or $20 more than the most expensive version of Microsoft Corp.'s - Xbox 360.

The PS3 still costs twice that of Nintendo Co. Ltd.'s - Wii console, whose $250 price and motion-sensing controller have made it a best-seller despite its lack of cutting-edge graphics and hard disk.