Sony may be preparing to drop the price of the to be announced probably at Gamescom in Cologne later this year.

The expected RRP is somewhere around the 199 GBP mark for the cheapest model with some retailers prepared to go as low as 179 GBP.

British analyst Nick Parker suggested: "199.99 GBP makes sense as it keeps Sony's options open for another drop, but they could be more aggressive. wants to be No.1 but I expect it is adopting a 'wait and see' approach with possible new value-added deals on Kinect."

Codemasters boss Rod Cousens added: "I would anticipate a further price cut on existing consoles prior to Christmas. It'll probably happen around September and Gamescom may be interesting. But theres also time for a further cut next year, before U is out."

Thanks MCV.

By Ewan Aiton