Sony big cheese Nobuyuki Oneda has revealed that production costs have been cut dramatically by the giant, the executive telling investors that the cost of making the console has been cut by 70 percent - while discussing the firm's depressing first-quarter results.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," Oneda said, according to TVG.

"We don't disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule."

Oneda later admitted that costs had been roughly cut 70 percent, and this move will no doubt spark speculation that big PS3 price cuts are just around the corner. GamesCom or Tokyo? Who can say...

By Luke Guttridge