Sony had two major announcements today involving changes to the PS3 launch in Japan. First was news that the lower-end, 20 GB model would now include an HDMI port, which had previously only been available in the more expensive model. Speaking of expense, the real news was that the 20 GB model would also be receiving a price cut before the system even shipped, from 62,790 yen to 49,980. In American dollars, that translates as about $535 dropping to $426. The 60 GB model's pricing is still "open", meaning retailers can charge what they see fit, but the price will probably see a similar drop.

The big question for everyone who isn't Japanese is what these means for the rest of us. Sony has made no official announcement as to the change carrying over to any other countries. This may not be a response to complaints that the system is too expensive, but rather a response to Microsoft's recent announcement of a core system bundle in Japan that will include the highly anticipated Blue Dragon for 29800 yen ($260). As such, they'd probably only drop the price elsewhere if Microsoft pulls the same stunt in other countries.

Interestingly, feedback isn't all positive for this move. (Sony just can't catch a break.) One Japanese analyst is quoted as saying:

"It's ridiculous to decide to cut the price before they start selling the PlayStation 3,'' said Yoku Ihara, head of equity research at Retela Crea Securities Co. in Tokyo. ``They may cut the price again if sales don't go well."

And of course, there's also the issue that this puts Sony even deeper in the hole:

Sony's price reduction ``is negative for the short term because the company may not be able to sell enough consoles to cover an instant loss caused by the price cut,'' said Naoki Fujiwara, who oversees $720 million in assets at Shinkin Asset Management Co. in Tokyo.

Update: Sony's Phil Harrison has spoken on why only Japan gets a price cut:

We started by calculating the price for the US and European territories by looking at what consumers considered the 'magic price points'. In these territories, the prices we announced were very well accepted. We then converted that price to yen without giving consideration to 'magic price points.' The feedback was not supportive, so we lowered the price.

Very well accepted? Where was this again?