Electronic Arts has announced that its new releases for the current generation consoles will have a price of $39.95, representing a 20 per cent price cut necessary in this transition period, according to the company.

The Godfather and Black will be released at the new price point, as will the current generation (PS2 and Xbox) versions of EA Sports title Fight Night Round 3, whose Xbox 360 version will continue to be priced at $59.95.

"$39 is resonating with consumers given the transition," EA's communications boss, Jeff Brown told Reuters. "There are indications that $39 is a solid and sustainable price point."

While consumers will surely be happy to see prices dropping for current generation titles, it will make the price contrast with next generation software even more palpable. Games for the Xbox 360, currently the only next-gen console on the market, will now showcase a price point $20 above everything else on the shelves.