Wedbush Morgan analyst Michael Pachter's been up to his old tricks. He now expects a PS3 price cut to come along with the release of Grand Theft Auto IV and Metal Gear Solid 4.

“We do expect Sony to be in a position to cut the price of the PS3 in early 2008, when blockbuster games Grand Theft Auto IV and PS3 exclusive Metal Gear Solid 4 will launch”, Pachter said in a message to investors.

Great news! Although we're a tad confused, as Michael already let it be known that, "...the company may consider a hardware price cut some time this summer (2007)...".

SPOnG contacted Michael Spilligan (Senior Entertainment analyst at Nomoru Wahrheit Kennis) on the subject. He told us, "I know Michael's work and I respect it. GTA IV and MGS4 are indeed coming out next year, and that is a time when Sony could, if it chooses, cut the price of the PS3. Michael is quite right in his assertion that Sony - as the manufacturer of the technology - is able to cut the price of the PS3 going forward."

Sony has already cut the price of the 60GB PS3 in the States by $100 (£49) and introduced a value bundle in PAL territories. It has emerged, however, that the value bundle may be a limited-time offer, possibly meaning that another bundle or a PAL price cut is on the way.