There is no actual confirmation from Sony that the PS3 will see a price cut anytime soon, but increased output of blue-violet diodes hints at future price cuts. Production of the diode — a key ingredient of the PS3’s Blu-ray drive — is currently at 1.7 million a month and Sony is now prepared to up that to 5 million which will decrease Sony’s materials cost which should result in price cuts for the PS3.
Michael Pachter, Wedbush Morgan Securities analyst, told GameDaily Biz that once the cost to manufacture each console is below $499, the price cut is inevitable. He goes on to say that the introduction of the Xbox 360 Elite will ensure we’ll see a cheaper PS3s this year. I’ll believe it when I see it.