An analyst working at Goldman Sachs is predicting Sony will cut the price of the PlayStation 3 by $100 worldwide in October.

Yuji Fujimori states that lowering the cost of the console, which competes with Microsoft's Xbox 360 and Nintendo's Wii, will not undermine the unit's long-term profitability.

"The PS3 price has long been cited as high," Fujimori wrote, noting that cutting the price of game consoles has historically quadrupled volumes.

Fujimori believes Sony will simplify the design of the current PlayStation 3, helping to reduce its cost. He said, "the PS2 started with 2,000 parts and finished with 600. The PS3 prototype had 4,000 components but now a shift to around 2,000 is in the pipeline."