The Tokyo Game Show kicks off later this week, but Sony decided to hold a pre-TGS PlayStation event where it focused on a number of new titles heading to its platforms. However, alongside lots of game announcement, Sony revealed that a PS4 price drop is happening in Japan next month.The PS4 currently sells for 39,980 yen (US$332) in its home territory, but from October 1, that will fall to just 34,980 yen (US$290). That’s a 10% price drop.For reference, the PS4 console in the US sells for an RRP of $399. A similar price drop would see that fall to just $359, which would likely mean $349 once retailers confirmed the new RRP. We don’t know if that’s going to happen, but a price drop in one territory is usually followed in others even if there is a delay of a few months between announcements.As to why Sony has decided on the price change, I see two reasons. The first is the fact Xbox One is now typically offered cheaper, with prices hovering around $349-$379. Even though it’s the less popular machine, that still counts as an advantage Sony would rather it didn’t have. The second reason is the new PS4 model, which has a simplified design and therefore probably costs less to manufacture. That allows a price drop to happen without having a big impact on profit margins.It would be nice to see the same price drop happen for the US and Europe before the holidays. Stock of the updated CUH-1200 model is making its way on to the market outside of Japan, so a price drop in November when the majority of older PS4 models have been sold would make sense, and certainly boost sales over the Christmas period. Fingers crossed Sony is thinking the same.