Most people in Japan were likely pleased when hearing Sony's recent news about dropping the price of the lower end model PlayStation 3 from ¥62,790 (US$540 or €421) to ¥49,980 (US$430 or €335). Some analysts, however, don't see it as a good thing.

Yoku Ahara said "It's ridiculous to decide to cut the price before they start selling the PS3...They may cut the price again if sales don't go well." Naoki Fujiwara of Shinkin Asset Management seems to agree with Ihara when it said "Sony will take a bigger hit on a launch it is already losing money on".

This may also prove detrimental in the short term if Sony can't sell enough systems to cover the extra loss from the price cut. So who's right? We'll find out in just under 2 months when the system launches.