Better late than never. Sony’s move to knock $100 off the price of its PlayStation3 gaming console will be cheered by would-be gamers put off by the gadget’s rather formidable price tag. Before Tuesday’s 25 per cent price cut, Sony’s flagship console cost double that of Microsoft’s entry-level Xbox 360 and $150 more than its quirky counterpart, the Nintendo Wii.

Cutting prices should quickly boost shipments as customers who delayed purchases in anticipation of Sony bowing to the inevitable pounce on the cheaper models. But Wednesday’s 4 per cent fall in Sony’s shares suggests investors remain sceptical that lower prices, a sleek case and a few new online features will help pull Sony out of the doldrums.