Sony plans to eliminate the 40GB PS3, and drop prices on the 80GB model.

PS3 Gets Price Cut, Loses 40GB Version

Starting this fall, the 80GB PlayStation 3 will be $100 cheaper.

Microsoft wasn’t the only one to slash game prices this week. Sony, in an effort to keep up with the competing console, announced a PS3 price cut—to the tune of $100.

Come this fall, Sony will knock $100 off the price of the PlayStation 3—but only the 80GB version. The new price will be $400, which is what the 40GB version currently retails for. Don’t look for a bargain there, though. The company plans to discontinue the 40GB model.

The San Jose Mercury News notes that the move shows how Sony seems gunning for Microsoft, instead of focusing on market leader Nintendo.

Earlier this week, the company announced movie and TV downloads available at the PlayStation Store. The service will feature standard- and high-definition content, with 300 full-length movies and more than 1,200 TV shows, to start. Microsoft also recently announced a Netflix partnership, as well as its own price cuts, in an effort to clear inventory on the 20GB Xbox 360.