Analyst: Sony could cut PS3 price by $100 as early as late summer

Lazard Capital Markets analyst Colin Sebastian says that the PS3 could get a $100 price cut between E3 and the end summer.

Putting the console at $299 would not only be good for business, but the purse strings as well. Anything less "would likely be perceived negatively by the market," Sebastian told Gamasutra.

"In addition to a $100 price reduction, which would put the PS3 in easier reach of a mass market audience, we note that Sony has a healthy lineup of upcoming first-party video games planned over the next year, including inFAMOUS, God of War III, Heavy Rain, Uncharted 2 and Gran Turismo 5," said Sebastian.

"For Sony PlayStation, we believe the next 12 months are critical to regain market share, particularly with Nintendo losing some momentum near- term, and with Microsoft likely introducing a new gesture-based user interface."

More through the link.