New York (CNN Business) Sony is permanently slashing prices on its cloud gaming service by as much as 50% just as multiple tech companies are moving closer to launching competitive offerings.

Starting Tuesday, Playstation Now will cost $9.99 a month instead of $19.99; $24.99 for three months versus $44.99 previously; and $59.99 for a full year rather than $99.99. Current subscribers will see the price drop on their next billing cycle.

Grace Chen, Sony VP of Global Services, explained in an interview with CNN Business that the new entry-level $9.99 price represents "the price point that people are used to paying for their entertainment services." She denied that Sony decided to drop the prices to match its competitors.

Microsoft MSFT Google GOOG Even though Sony arrived in the market in 2014, its cloud gaming service is at a disadvantage in some ways to newcomers. Bothand's services will work on mobile, bringing the experience of console gaming to the smartphone. And while Microsoft still hasn't announced a business model for xCloud, Google is testing multiple ones, including a free version of Stadia.

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