The Sony Corporation is set to halve the number of suppliers it uses over the next two years in an effort to cut costs, but those rumours of an imminent price cut for its PlayStation 3 console still refuse to go away.

Sony announced its plans to cut its fixed costs by more than 300 billion yen this week.

PS3 price cut?

The announcement has lead to a number of leading gaming news outlets predicting that Sony's latest round of cost cutting might help the company to make the much-needed PS3 price cut that many gamers have been crying out for.

"I'm not sure how effective this is because it's just operational streamlining and wouldn't simply push up earnings or bear fruit immediately," Mizuho Investors Securities analyst Nobuo Kurahashi told Reuters.

Sony has forecast an operating loss of 110 billion yen in the year to March 2010 and is set to cut 16,000 jobs and close down 14 per cent of its 57 manufacturing sites.

Via Reuters