PlayStation 2 to receive price cut

Sony will cut the price of the PlayStation 2 from $149 to $129 before the end of the month.

That's according to the Lazard Capital Markets report, authored by Colin Sebastian, a well respected senior game-industry analyst. Sebastian predicts that a PlayStation 2 price cut is only a matter of weeks away, writing "Our industry checks indicate that Sony is planning to cut the PS2 price to $129 from the current $149 before the end of this month."

Sony hasn't hinted that such a price cut is imminent, but that doesn't mean it won't happen. Sony reportedly makes a profit on each PlayStation 2 console, meaning it has some room for manoeuvring its retail price. The question isn't really if Sony will cut the price of the PlayStation 2, but when it will happen.

"In our opinion, hardware price cuts are necessary not only to drive demand at the end of a console cycle, but also to bring the current-generation consoles within reach of more value-oriented customers," wrote Sebastian, also adding that we can expect the PlayStation 2 drop to only $99 in 2007.

A price cut does make sense, as Sony is keen on keeping the PlayStation 2 as an active player in the video game market, and with next-gen consoles making their presence known, the time might be right to make the cut.