Sony is in a bit of trouble. They've posted their first full-year losses in fourteen years, and they expect those losses to continue clear through to 2010. Once the top-dog of the console market, the PlayStation line is running into a lot of trouble due to its bulky size and high price.

That's why Lazard Capital Markets analyst Colin Sebastian believes that Sony will cut the price of a PS3 from $399 to $299 before the summer is out. Sebastian goes so far as to say that he believes the price drop will happen between E3 and the end of summer. The reason the anticipated price drop is $100 is due to the fact that "sweet spot" for console price is a little under $300.

A price drop might be the best thing for Sony right now. Even if the PS3 Slim doesn't become a reality, they still have to deal with the issues keeping the PS3 from ascending to the heights its predecessors did. Price is the biggest of those problems, and it's the easiest one of them for Sony to fix. A price cut will get more consumers to buy PS3s, and thus more PS3 games and peripherals.

If Sebastian's prediction does come true, it'll probably happen on or shortly after E3. Sony is going to want as much publicity for a move like that as they can get. Until then, keep your fingers crossed and hope that we see a $300 PS3 before we see a bankrupt Sony.