Sony announced yesterday they are now able to make Blu-Ray players for a cheaper price, which immediately kicked off speculation that they would soon decrease the price of the PS3.

"If the cost of Blu-ray is coming down, you can drop the price of anything with Blu-ray in it," said Arvind Bhatia, Sterne Agee & Leach Inc. analyst.

We had heard word of this several weeks ago, with the solid possibility of lower production costs right around the corner. Now, with cheaper component costs and production efficiencies, it is officially cheaper to produce Blu-Ray products. The market has already felt the impact of this big change, as Sony also revealed a new Blu-Ray player would go on sale later this week for $500 ($100 cheaper than expected). That makes it the lowest-priced Blu-Ray player available, with the PS3 a close second at $600. It also means the PS3 appears to be next in line for a price cut.

Not surprisingly, most analysts believe such a price drop will result in better sales for the console.

"Feedback from retailers continues to indicate that a price cut on PS3 will be important," said Bhatia.

Well, we could've figured as much. At this point, it may even be reasonable to expect a PS3 price drop this summer, although Sony's official policy on the matter is simple: they don't talk about a decreased price tag until they're ready to make the move. Even so, it seems that move is looming close on the horizon…

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