Reports of Sony Corp. intentions to sell approximately $2.9bn (£1.4bn) of shares in the company's insurance division, Sony Financial Holdings Inc., have become apparent.

This comes amid increased speculation that the capital will be poured into the flagging PlayStation3.

Believed to be the largest initial public offering in Japan this year, the move comes after a turbulent recent time for world stock markets and could lead to a PlayStation3 price reduction to re-ignite interest in the third-placed format.

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

Whilst a serious PS3 price reduction would undoubtedly help the console's position, it's unlikely Sony would jump into the action, and they would have to tread carefully to avoid upsetting the four million PS3 owners.