In an attempt to gain market share, Sony has slashed the price of its current PlayStation 3 by $100, or 16.7%, and introduced a high-capacity model in an effort to spur sales of the struggling video game console.

It plays into the company's upcoming strategy of eventually offering downloaded high-definition movies, video games, movie trailers and demos, Sony spokesman David Karraker said.

Sony will be releasing 100 new video games during the current fiscal year, including 15 titles that are exclusive to the PS3 such as the hack-and-slash action title "Heavenly Sword."

Both Sony and Microsoft will have to come up with something to catch the popularity of the Nintendo Wii!