Sony will sell about $2.9 billion worth of shares in a new IPO for its insurance unit, Japan's biggest IPO this year. 34.5 percent of Sony Financial Holding Inc. will go on sale in the Tokyo Stock Exchange on October 11th. It's expected that the money generated from the IPO will raise funds for the consumer electronics and games divisions.

"Sony could use the funds for various options to strengthen its electronics and game businesses,'' said Mitsuhiro Osawa, a Tokyo-based analyst at Mizuho Investors Securities Co. "A cut in the price of the PlayStation 3 is one option,'' said Osawa.

Analysts are predicting that another PS3 price cut may happen in the coming months. Certainly, the gain of nearly $3 billion in funds will certainly help subsidizing any losses that Sony would incur from such a move.

[Via GI.biz]

This article was originally published on Joystiq.

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