After years of pricing complaints from every sector of the game industry, from developer to publisher, retailer to end user - i.e. the people that can't afford the thing - Sony has officially dropped the price of the PlayStation3 (PS3) to something equating to "affordable" at $299.

But first, Sony has also taken to reinventing the PS3 as a leaner machine with a slimmer form factor, available at retail on September 1st.

Internally, the new PS3 sports the same general technical specifications of the original model but employs smaller, faster and more efficient guts, the semiconductors and power sources. Basically, the consumptive needs of the thing have been reduced, as has the noise it emits when trying to cool itself.

Externally, the new PS3 sports the same curve-topped form factor but at two-thirds the scale of the original (and almost two-thirds of the second model, which Sony quietly released last year after stripping out several superfluous components and reducing the price not enough).

Also gone is the Fingerprint Black finish, replaced with an entirely less garish, slightly textured matte-black skin and none of the cheesy faux chrome accents.

Technically known as model CECH-2000A but unofficially referred to as the "PS3 Slim," the lean, mean, gaming machine also features a 120GB hard drive, the ubiquitous Blu-ray disc drive, in-built wi-fi, HDMI output and all that other stuff one expects of a high tech Sony console.

While Sony has pegged the price for the PS3 Slim at $299 USD and $299 Cdn. (Sony's noble penchant for ignoring a waffling exchange rate continues, whereas Microsoft and Nintendo traditionally gouge Canadians against a "conservatively" inflated greenback), which is a $100 price drop from the earlier model's $399 price tag.

But that's as of September 1 on the new model. Sony still has a whack of non-slim inventory sitting at retail. Hence, as of today, Sony is also reducing the price of the original PlayStation3, which is actually available in two models, at least one of which Sony is expected to discontinued (nothing official announced) after the PS3 Slim hits the streets as the new flagship model.

The current PS3 w/80GB hard drive - the "PS3 Plump," as it were - is now available for $299 US and Cdn. as well, which gives Sony and its retailers a couple of weeks to blow out old stock before consumers reach for the fingerprint-free iteration.

The current PS3 w/160GB hard drive - PS3 Plumpiest? - meanwhile, has also been reduced by $100, from $499 down to $399 USD and Cdn.

Sony's nearest competition in the game console space is Microsoft, which currently floats three models of Xbox 360: a 120GB "Elite" version retailing for $399 USD and Cdn.; a 60GB "Pro" model at $299 USD and Cdn.; and a 0GB (read: inadequate) "Arcade" version at $199 USD and Cdn. However, as the worm turns in the video game industry, Microsoft is fully expected to follow suit with Xbox 360 price cuts of its own.

Sony's furthest competitor, meanwhile, is Nintendo with its family friendly, comparatively "low tech" Wii having lapped the PS3 in sales sometime ago, sitting pretty as this generation's best selling console by far. As such, Nintendo has never felt compelled to play the price drop/price match game with either competitor; listing the Wii at an unflappable $249 USD and $279 Cdn. (see that, Canada? Cough, choke, gouge...) since it hit the scene three years ago.

That said, the entire game industry has suffered stagnating sales through this worldwide group hug of a recession. Nintendo may just take a moment to stop petting its peacock and jump into the fray with a price cut of its own - or perhaps offer a Wii bundle with the likes of Wii Sports Resort and/or a Wii MotionPlus accessory tossed in with the console as a freebie. Time will tell; holiday spending season looms, after all.

But as it stands now, pound for pound, a $299 PlayStation3, plump or slim, offers the best bang-for-your-buck. Considering it contains built-in Wi-fi - which Microsoft inexplicably values as a $100 Xbox 360 accessory, sold separately - and Blu-ray movie playback and other internet-connected movie features (which in itself has not taken off as Sony expected, though the high-def movie experience offered is second to none, if you're into that sort of thing), PlayStation3 represents the pinnacle of videogame/home entertainment technology at a competitive price.

The problem, of course, is that Sony has been taking a bath on the thing since it was introduced, widely reported as losing money on each unit sold, even at the steep price point, and is now $billions in the hole for it.

In a self-inflicted Catch22, Sony flounders in third place, mainly due to that inflated price while the competition gained a stronger market presence, offered essentially (though not technically) identical gaming horsepower, better online integration, and a wider, deep stable of quality games in the Xbox 360, and massively appealing console quirkiness in the Nintendo Wii, the latter of which single-handedly carved a whole new market niche for itself, commonly referred to as "everyone."

Considering its smaller components and the economies of scale, the new PS3 Slim may soon (someday?) represent a null-loss or perhaps even a profit on hardware for Sony.

Regardless, the dramatic reduction of its retail price point will surely spur sales, which is good for consumers looking for bottom-dollar top-of-the-line, game publishers looking for a larger install base to sell games to (enduring complaints about PS3 development costs notwithstanding), and maybe even Sony, which asininely assumed that consumers would "work more hours to buy one" back when it launch in 2007 - and has been eating crow ever since.