If you have always wanted a PS3 but have never really wanted to part with the $500? Well your time has now arrived!

Sony consoles have dropped in price as of today by as much as $250, which brings the price way down. In an email from EB Games today the current price of the 160gig slim black Sony console is $348, the 320gig with 2 games is $448. This seems to be in line with calls to drop the launch price in Australia of the soon to be released PlayStation Vita, which is said to have a day one price of $348 for the standard WiFi non 3G version of the console.

The price reduction has analysts in a spin with theories about the reason and what Microsoft may now do to combat the stretch for retail sales leading to Christmas. I have a few basic short theories of my own and in the interest of not giving much away, I personally think it’s a combination of a declining market in retail, the need to boost sales and setting a low price point may force Nintendo to aim low for the new Wii U, which will mean a longer wait before a fiscal return is seen. Some sneaky things from Sony.

Lastly discussions have begun around Microsoft and them combating the grab for market share by reducing the Xbox360 prices. This I was sceptical about and would have thought MS would have waiting to see what the price drop achieved, alas I received an email from WOW Sight n Sound today also with the 4gig Xbox360 Kinect bundle for $349, that’s a cool hundgie of retail. It maybe a coincidence but if another retailer drops the price on the bundle within the next few days this may become a new RRP. Watch out as the sky falls folks.