The Game Over column at CNN is reporting on analyst predictions of a Sony price drop. Most of the current rumors point to a price drop announcement at E3, but Game Over quotes one analyst as predicting a price drop earlier than E3, to allow the focus of the game expo to be squarely on the PS3. Overall consensus appears to be a price drop from $149 to $129.

This could theoretically force Microsoft to drop the price of the Xbox to match, however, when the Xbox 360 launched, the Xbox technically received a price increase. Since non-bundled Xboxes are no longer available in market, the only real option was the Xbox Forza bundle for $179.99. With Forza available separately for $19.99, the effective price of an open market Xbox is $159.99, ten dollars higher than the core unit. The Xbox has definitely been pushed to the background with the release of the Xbox 360, so a price match is hardly definite.

Ahead of the analyst predictions of a price drop come an interesting thread on the Cheap Ass Gamer forums, where Gamestop stores have been reported as receiving new signage advertising a PS2 price drop, but without any markings indicating what the final price drop will be.

Read More | Game Over at CNN