Develop reports that Sony has cut the price of PlayStation 3 development kits in a bid to ''contribute to cost-saving measures of the development community".

SCEI said the prices for the PS3 SDK will be reduced to $10,250 in North America, 950,000 Yen in Japan and €7,500 in Europe.

At the same time, the format-holder has also announced further improvements of the kit by integrating tools made by its Bristol, UK-based subsidiary SN Systems with the PS3 SDK. ProDG, SN-DBS, and SN Linker have already been integrated – SN Compiler will be available to developers from mid-December.

SCEI has also updated Debug PS3 units so they can be used to support programming, effectively upgrading the machines from their sole use as a QA machine.

In the official announcement about the cost-cutting and new SDK, Sony said it will keep cutting the price of its development technology to support studios - and presumably keep PS3 an attractive development proposition.

"As more and more new titles are developed for the PS3 format, SCEI will significantly reduce the price of the Reference Tool in order to contribute to the cost saving measures of the development community," said the company.

"Along with this boost to the PS3 game development environment, SCEI will further reinforce its support system to the development community, and continue to further expand the PS3 platform."