Sony is telling everyone that will listen that the price cut on the PlayStation 3, as well the new slim model, is signaling a return to the company’s roots in gaming. SCE chief Kaz Hrai claims that the announcements signal a renewed spirit and a new direction for the PS3.

The bigger revelation is the news that Sony will be moving to again sell the console at a loss and make up the difference on the software sales. This is a return to the “razor and razorblades” business model that has been successful for Sony in the past.

Sony also claims that they have no regrets in putting some much newer and expensive technology in the PlayStation 3 which, in turn, has driven the cost of the console up. Producing a console with anything less would have put the company into a situation where it would have been difficult at best to get ten years out of the lifecycle of the console.

While Sony is acknowledging that the growth rate of the PlayStation 3 is at a rate that is much slower that what the company saw with the PS2, it is hoping that the recent price cut will be the ticket to better compete with its rivals.

Sony did not disclose how much exactly they are losing on each PlayStation 3 that is sold, but some sources are telling us that even with all of the extensive cost reductions the number could be as high as between $50 to $75 on each console sold currently. This number is expected to go down over time, however.