Price drop in advance of PlayStation 3 launch later this year

Sony fired a volley in the games console battle yesterday by knocking approximately $20 off the price of its PlayStation 2 in North America, bringing the suggested retail price down to $129.99.

The company expects the move to fuel consumer demand as it gears up for the launch of the PlayStation 2's successor later this year.

Sony claims that the PlayStation 2 is the most popular gaming platform in North America, Europe and Asia, with more than 101 million units and approximately one billion games shipped worldwide.

Research from the NPD Group revealed that the console continues to lead in unit market share with 55.6 per cent in the US, more than double that of any other console on the market to date.

The PlayStation 2 is also way ahead on the software front, enjoying a 70 per cent lead over any other competitor in games titles available on the market in March, according to NPD Group.

Meanwhile, semiconductor foundry Chartered Semiconductor Manufacturing has signed an agreement with Microsoft for the manufacture of CPU products for the Xbox 360 using 65nm Silicon-on-Insulator (SOI) technology.

Production is expected to begin in the first quarter of 2007 to support growing demand for the Xbox 360.

The announcement follows Chartered Semiconductor's successful manufacturing of 90nm SOI CPU products for the Xbox 360 launch through an agreement with IBM.