Sony slashing PSP price for holidays?

What we heard: According to industry analysts, Sony is going to make one of its gaming platforms very affordable this holiday season. Unfortunately for next-gen gamers, they're not talking about the PlayStation 3.

Analysts believe that a price cut for the PSP is inevitable sometime later this year, reports CNN/Money. The PSP's current suggested retail price is $199, but American Technology Research's P.J. McNealy believes the handheld's price will fall to $149.

"There is a price cut coming in the second half of the year," McNealy told CNN. "[The PSP] has lost momentum. Nintendo has had a great run since it launched the DS Lite and Sony needs to regain some ground."

Besides the need to compete with Nintendo's DS Lite this holiday season, McNealy points toward Sony "apparently stockpiling finished gaming hardware" as a sign that a price cut is imminent. The price drop could also be tied into a game's launch, such as October's Grand Theft Auto: Vice City Stories, the follow up to one of the PSP's biggest hits.

The PSP's price was dropped from $249 to $199 in March, and another price drop this holiday could help Sony make a dent in Nintendo's DS Lite momentum. CNN/Money puts the PSP at 20 million units shipped worldwide, while the DS, in large part thanks to the release of the redesigned DS Lite, has sold 21 million units. The DS Lite currently retails for $129.

Looking at the hard evidence for a price drop doesn't really reveal much. Sony is likely to stockpile hardware during every holiday season, and it's hard to say a price drop is a done deal with only one analyst on record saying that it's going to happen. Does it make sense? Yes. Is it going to happen? We're not sure.

When asked for comment, a representative from Sony would only say that the company has not announced any price cut, and would not comment on rumors and speculation.

Bogus or not bogus?: Too close to call on this one. Without a compelling argument, we're abstaining.