Hoping to encourage more games for the PlayStation 3, Sony has cut in half the price of a software development kit for the struggling console.

Sony's gaming unit, Sony Computer Entertainment Inc., said prices for the development package for the PlayStation 3 will be reduced to $10,250 in North America, 950,000 yen ($8,600) in Japan and 7,500 euros ($11,250) in Europe.

Monday's move follows last month's price cuts on the PS3 around the world, and Sony has said that sales have improved in the U.S., Japan and Europe. The 80-gigabyte version PS3 now sells for about $499, down from $599.

Although its predecessor the PlayStation 2 dominated the gaming market, the PS3 has struggled against the Nintendo 's Wii console.

There have been no price cuts on the Wii, which sells for about $249.99 in North America, 249 euros ($370) in Europe and 25,000 yen ($230) in Japan.

The PS3 has also lagged behind Microsoft's Xbox 360. Microsoft has sold 13.4 million Xbox 360 consoles over the last two years.

Boosting PS3 sales is crucial for Sony's overall business strategy because it also supports the Blu-ray disc next-generation video.