LONDON -- Sony has announced that it will cut the price of the PlayStation 4 in the U.S. by $50, with the next-gen console now available for $349.99, matching the price of Microsoft's Xbox One console.

The price reduction was widely expected after Sony cut the price of its console in Japan last month during the Tokyo Games Show and it is expected to roll out the reduced price to all regions before the end of the year. With the PS4 about to celebrate its second birthday in November, this move is something that mimics similar price cuts for the PlayStation 3 at the same point in its lifetime.

This is the first permanent drop in price for the Sony console and brings it in line with the price of the Xbox One, which was permanently cut to $349.99 in June. Sony will also introduce a price cut in Canada this week, dropping the cost of a standard 500GB console from $449.99 CAD (about $345) to $429.99 CAD.

“Our goal at PlayStation has always been to offer the best place to play at a compelling value to gamers,” said Shawn Layden, president and CEO of Sony Computer Entertainment America. “We’re continuing to deliver on that commitment with this new price for PS4, making the console even more accessible to a broader audience this holiday. With highly anticipated games like Call of Duty: Black Ops III and Star Wars Battlefront launching soon and blockbuster exclusives like Uncharted 4: A Thief’s End on the horizon, there has never been a better time to join the PS4 community.”

The PS4 holds a significant lead over Microsoft's Xbox One and Sony will be hoping that the drop in price, combined with the launch of a 1TB model will help boost sales in the important holiday season. As well as dropping the price of the basic console package, Sony has also cut the price of some game bundles it will be launching in the coming days, weeks and months. Here is a list of the deals that will be available and the dates they will launch:

  • Uncharted: The Nathan Drake Collection PS4 Bundle (500GB HDD) -- $349.99 (Oct. 9)
  • Limited Edition Call of Duty: Black Ops III PS4 Bundle (1TB HDD) -- $429.99 (Nov. 6)
  • Limited Edition Disney Infinity 3.0: Star Wars PS4 Bundle (500GB HDD) -- $399.99 (Nov. 13)
  • Limited Edition Star Wars Battlefront PS4 Bundle (500GB HDD) -- $399.99 (Nov. 17)
  • Star Wars Battlefront PS4 Bundle (500GB HDD) -- $349.99  (Nov. 17)