Sony's price-cut news of course may also be good news for Sony's Blu-ray high def platform, since that player is built into every PS3. But remember, when retailers like Walmart Wal-Mart slashed prices on the Toshiba-backed HD DVD players during a one-day sale a couple of weeks ago, Blu-ray supporters seized on the move as a "fire sale" by that platform's backers to unload inventory nobody wanted.
Now that Sony has cut the cost of the PS3, its move is being lauded as a brilliant strategic move to boost sales of the otherwise under-performing PS3 that hasn't met initial sales goals. However, this could also have a big impact on the format war.
The fact is, Blu-ray is vastly outselling HD DVD simply because it is embedded in the PS3. But that's not necessarily such a vote of confidence for the platform since NPD released a study saying as many as 60% of PS3 buyers weren't even aware there was a Blu-ray player in the device. Will the PS3 pricecut give Blu-ray a big boost in sales? Only time will tell.