Console gamers in Japan were able to breathe a slight sigh of relief today when it was announced that Sony would trim the price of the basic 20GB PlayStation 3 console to 49,980 yen or $430 USD (down from $499 USD). The price cut is a direct response to the cries from the buying public over the high price of entry for the PS3 in comparison to its competitors. It was also announced that the base system would get HDMI output.

Even with the price reduction, the base PS3 is still priced well above its competition. It was announced two weeks ago that Microsoft would introduce the XBOX 360 Core System for the Japanese market at around $255 USD. Last Thursday, Nintendo announced a price tag of $212 USD for its Wii in Japan.

Sony's Ken Kutaragi remarked to reporters that "The Japanese users and media would not stop saying a price tag of over 60,000 yen, including tax, was too expensive." One must also remember that Kutaragi was also quoted as saying back in May that the $499/$599 price points were "probably too cheap."

It should be noted that while the price cut affects the 20GB PS3 model, there is no word on if the price will also fall on the higher spec'd PS3 with its 60GB hard drive, WiFi, and MemoryStick/SD/CompactFlash reader. There is also no word as to whether this price cut will extend to PS3s destined for US shores.