The sometimes not so trustworthy Chinese site Digi Times is reporting that the shortage of blue laser diodes, the expensive little things found in the PS3, is ending. The little laser was the reason the PS3 was delayed in Europe, and a big reason for the $600 price tag.

According to Digi Times, Sony has increased production of the laser diode, with prices falling as much as $100. It is uncertain whether the PS3 price will fall that much, but according to Sony executives, a price cut is indeed considered.

The PS3 has been trailing behind the Wii and Xbox 360 – the major reason being the steep price tag. A $500 60GB PS3 would certainly attract more buyers, if only for the Blu-ray movie playback capability.

Via Ars Technica