Analyst: PS3 price cut possible this year

One thing many industry watchers believe will have to happen for Sony to maintain its role as a juggernaut in the gaming business is a price cut for its PlayStation 3. Currently strapped with a tag of $499 for the 20GB model or $599 for the 60GB model, the PS3 has the distinction of being the most expensive console on the market.

Sony is making steps to bring down the cost of the system's production, and one analyst believes that a PS3 price cut could happen this year. Goldman Sachs analyst Yuji Fujimora believes Sony may cut the price of the PS3 by $100 this October, reports CNN Money.

Citing design simplification (Fujimora provides the example of the PlayStation 2 consisting of 2,000 parts at launch and only 600 parts in its latest incarnation) and cheaper microprocessor chips, Fujimora believes a price cut would not hurt Sony's strategy overall.

Microsoft released the Xbox 360 almost a full year ahead of the PS3 and has not yet cut the price of its console. Nintendo's Wii, which debuted shortly after the PS3, currently retails for $249.