Strong sales of the affordable Nintendo Wii are putting the screws to console opponents Microsoft and Sony.

Rumors of price cuts to the Xbox 360 and PlayStation 3 have increased in number over the past few weeks. While Sony has been tight-lipped regarding its pricing plans, rival Microsoft now says it's time for a new approach.

"We are well aware that the sweet spot of the market is really 199 bucks," said director of Xbox product management David Hufford to Bloomberg. The Sony PlayStation 2 is currently priced at $129, and managed to outsell all of the next-generation consoles last November, despite the launch of the PlayStation 3 and Nintendo Wii that month.

"When mom walks into the store and sees she can get a console... Read more

An online report from Game Informer claims that key Nintendo of America executives plan to leave the company when its sales and marketing teams relocate from Redmond, Washington to San Francisco and New York City. Among those alleged to be turning down the relocation and remaining in the Seattle area are marketing and corporate communications senior VP George Harrison (pictured left), marketing and corporate affairs VP Perrin Kaplan, and public relations senior director Beth Llewelyn, all longtime employees well known among the video game press and enthusiast community.

News of the relocation began circulating last month. The rumors... Read more

Sony Computer Entertainment America yesterday laid off between 80 and 100 employees at its Foster City central office, gaming blog Kotaku reported today. Kotaku's source, allegedly among those let go, claimed that the move came without warning, and was unexpected even among much of the company's management. The downsizing was executed throughout the day. Laid off employees were reportedly given a "fair" severance package.

Today's news comes less then a month after reports that Sony Computer Entertainment Europe saw similar downsizing, resulting in the loss of approximately 10% of its workforce, or 160 employees. At the time, ... Read more