With E3 right around the corner and the holiday season fast approaching, it only makes sense that Sony might have something in mind to help boost their already respectable sales of the Playstation 3. Via Gamasutra, Lazard Capital Markets analyst Colin Sebastian predicts that Sony’s plan is to slash the price tag of their next-generation video game console from its current retail price of $399 to an even more affordable $299 sometime in between June and this coming fall.

According to Sebastian, Sony is planning on increasing their sales number by thirty percent, a feat that could prove difficult with the Playstation 3’s current price tag. Sony’s ability to cut back on manufacturing and production costs of the gaming console could allow for a potential price drop. Subsequently, a lower price tag would make it a more viable purchase for consumers and "provide the PS3 with a needed shot in the arm."

Why exactly a $100 price drop though? Sebastian says a video game console’s “sweet spot” is to sell for less than $300. Additionally, he also expresses that anything less than a $100 price cut "would likely be perceived negatively by the market."

A price drop would satisfy a number of parties. Not only would Sony be able to move more consoles (on which they are currently losing $40 per unit sold), but third-party developers and publishers will be more inclined to create games for the Playstation 3. In the past, companies like THQ and Activision had petitioned Sony to reduce the price of the Playstation 3, claiming that its price tag was negatively effecting software sales.