PS3 picks up momentum, but will it last?

By Peter Nowak, CBCNews.ca.

Sony says it has seen a big bump from its PlayStation 3 video game system since dropping the price and size three weeks ago, with more than one million consoles sold worldwide in that time.

The company introduced a redesigned console that was smaller, quieter and more energy efficient at the beginning of September, and also dropped the price to $299.

The move has worked so far — before the price drop and redesign, Sony was averaging about 720,000 console sales a month since its launch in November 2006.

Sony has been lagging behind competitors Nintendo and Microsoft in the current round of console wars. At the end of August, Nintendo led the pack with its Wii, with more than 50 million units sold, followed by Microsoft with 30 million Xbox 360 consoles sold. Sony, meanwhile, had only moved 24 million PS3s.

But will the new sales momentum continue? Microsoft recently sliced the price of its Xbox 360 Elite while today, Nintendo announced a $50 price cut on the Wii. Heading into this holiday season, it's pretty clear that the console wars are still on like Donkey Kong.