Microsoft predicts 40GB SKU later this year

Microsoft’s Xbox director of strategy, Andre Vrignaud, has labelled the USD 599 80GB PlayStation 3 as untenable for the coming holiday season, stating that Sony would need to offer a 40GB SKU for the considerably lower price point of USD 399, possibly as early as thanksgiving.

"[I]f they don’t move significant hardware this holiday, they’ll basically be dead for this generation," said Vrignaud, in an email to MSNBC’s Level Up. Elaborating, Vrignaud insisted the company would also have to lower the 80GB SKU to USD 499, as well as making available a cheaper model in time for thanksgiving; however, he predicted this would eliminate not only memory card and built-in Wi-Fi functions, but also hardware pertinent to PlayStation and PlayStation 2 backwards compatibility.

Sony is currently offering the 60GB PS3 for the reduced price of USD 499; however, this is only applicable until stock runs out, where the company will instead sell the new 80GB model, due to go on sale in North America from August 1st.