In a highly-speculated albeit still surprising move, Sony has agreed to cut the price of its PlayStation 3 video game console by $100.

Although a price slash had been speculated for months, the cut itself is both a tad shocking and very significant. The $100 represents 17% of the PS3's current retail cost, which has been set at $599 USD since its launch in November of last year. (Source: gamespot.com)

Sony expects the cuts will completely turn the tide on the console war, which has been anything but successful for the company's latest device. Outsold three to one in Japan by the Nintendo Wii and comparably embarrassed in the U.S. by Microsoft's Xbox 360, the PS3 sits unloved on many electronics store shelves.

With that said, Jack Tretton, chief executive of Sony Computer Entertainment America, believes good times are ahead. "Our initial expectation is that sales should double at a minimum," he boasted in a recent interview. "We've gotten our production issues behind us on the PlayStation 3, reaching a position to pass on the savings to consumers, and our attitude is the sooner the better." (Source: news.com)

So, will the cuts work?

Jury's out, for now. Although Tretton cites production problems, the PlayStation 3 has been in stock across North America since the end of the holiday season. For the time being, it's Nintendo's Wii that has parents and teens scouring metropolitan electronics stores for that rare white machine. Stateside, the PlayStation 3 has struggled against the Xbox 360 due to the latter's far more impressive game library.

Although the PlayStation 3, which includes a high definition Blu-ray player, presents good value and now matches the cost of Microsoft's console, it lacks what most gamers really want: a must-have exclusive franchise, along the lines of Halo or Gears of War. Until that "killer app" sets its sights on Microsoft and Nintendo, Sony shouldn't expect to leapfrog the competition.