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BY ADNAN S. KHAN

ANCHOR MEGAN MURPHY

You're watching multisource tech video news analysis from Newsy. 

Sony announced a price drop on the PS3 – and console’s demand went berserk.
Amazon announced a 400 percent increase in PS3 sales, and the Playstation-exclusive Tomb Raider Trilogy pack saw a 1,147 percent increase in sales, all within 24 hours.

The news also conquered Twitter where it became the most trending topic right after the price drop was announced on Tuesday.

So how much was the price cut? CNET has the details.

“Sony has dropped the price of its Playstation 3 models by $50. That means the 160 Gigabyte and 320 Gigabyte versions of the console will now just cost $249 and $299 respectively. The PS3 joins the Nintendo 3DS which dropped its price by 32 percent. We think that’s a pretty for a game console and blue ray player.”

That’s quite a lot of fuzz for just $50. A writer for GamePro says it’s too early to determine what it means for Sony and the PS3.

“While it’s just a snapshot of immediate interest in the PS3, it remains to be seen how Sony’s console will match up against the Xbox 360 throughout the month, and the rest of the season -- perhaps Microsoft will cut prices, too.”

Microsoft !? – cutting price of the Xbox?? – not likely says a writer for The Motley Fool.

“Will Microsoft’s Xbox 360 now be forced into a similar cut ahead of the juicy holiday shopping season? Probably not. Mr. Softy’s on top of the world right now, as the success of its Kinect motion-based sensor and the vibrancy of its Xbox Live gaming network make it less necessary to match Sony on the way down.”

But a writer for Financial Times says Sony knows what they are doing. And what they are doing is gunning for the top console position, now that the Nintendo has lost that crown to Xbox. The Times add the price cut may not be…

“…as big a step as the $100 cut of two years ago, but enough to extend its appeal to an audience beyond that of hard-core gamers as the all-important holiday season approaches.”

Analyst tell USA Today, PS3 sales can go up by as much as 20 to 30 percent. And to further challenge Xbox 360 and its ESPN deal, the Sony is going to launch an NFL streaming service, albeit for a hefty price. One analyst had this to say to the USA Today.

“Microsoft will likely wait to see the commercial impact of the price disparity between itself and the PlayStation 3 before reacting with its own price drop … One thing is for certain, this holiday season just got a lot more interesting.”



Transcript by Newsy.