PS3 price cut in October, says analyst

Sony may drop the price of the PS3 by around $100 in October this year, if an analyst report proves to be accurate.

Goldman Sachs analyst, Yuji Fujimori, this week predicted the price reduction, noting "the PS3 price has long been cited as high," and that a reduction would not undermine SCE's long-term profit from the console.

CNN Money reports Fujimori also highlights that simplification of the PS3 hardware, which would reduce production costs, would also boost profitability, noting that the PSone started out with 700 components,and was eventually reduced to 200. Likewise, the 2000 components in early PS2s were reduced to 600.

Above: The console price battle mightget a bit saucylater this year.But the consolewrestlingbattleis getting saucyrightnow...

He says that a 2000-component version of PS3 is "in the pipeline," reduced from 4000 in prototype versions. IBM has also last week unveiled its production of a cheaper 65mn version of the PS3's Cell processor.

We can only wait and see if the analyst report does indeed prove accurate.

March 22, 2007