AUG. 29, 2007 • Sony Computer Entertainment of America confirmed that its inventory of 60GB PlayStation 3s had been exhausted, with all available units having been purchased and shipped to retailers. Similarly, SonyStyle.com was telling consumers that it had exhausted its inventory of PS3s, and was recalling available units from its store locations to fill online back orders.

Impact: Price does matter. At $499, PS3 sales are more brisk than Sony likely expected – clearing inventory of the discontinued 60GB model in summer rather than seeing it last into the holiday season. While selling-off inventory is healthy, we expect consumer price expectations for video game consoles will not have been cleared when the 80GB PS3 debuts shortly.