Sony’s PS3, which has struggled since its November 2006 launch and currently ranks 3rd in installed user base among the next-gen systems, is set for a $100 price break, according to a Circuit City ad as posted in NeoGAF. The price cut was widely expected in the industry, and will most likely receive an official announcement at E3. The new price for the PS3 will be $499, but it remains to be seen whether this will be too little, too late.

Microsoft’s Xbox 360, which is $399, scored a major coup when it landed GTAIV — Sony’s killer app last generation — and exclusive downloadable content for the game. The Wii, which is $249, is out-of-stock pretty much everywhere and continues to dominate the market.

Still, it’s pretty early in the game, and all it might take is one great game (and maybe another price cut or two) and Sony may regain some market share.

Video Games