Despite poor UK sales, Sony had previously refused to bring the unit price down, though it would appear that the recent Xbox 360 price cut has forced their hand to reduce the price and introduce a considerably cheaper model.
The console is an excellent piece of hardware featuring a 60Gb hard drive, memory card readers, wireless connectivity as well as Blu-ray disc compatibility. Sony has created a TV tuner kit for the PS3, which allows it to record digital terrestrial channels. It goes on sale early next year.
The latest instalments of the hugely popular Gran Turismo and Grand Theft Auto franchises should play a significant role in determining the success of the PS3.

Although the original Xbox was never as popular as the Playstation 2 there are signs the 360 has won favour with a bigger audience.
And costing £180 for the base unit it undercuts the Playstation 3 while offering comparable levels of power.
The Xbox 360 was first to bring high-definition quality graphics into the living room and boasts a wide and diverse range of games.
The controller is excellent for racing games as it has two trigger buttons for accelerating and braking. The system also allows users to manage their music collections, but its video download service is only available in America.

Priced well below its Sony and Microsoft rivals, and not offering the same degree of technical sophistication, the Nintendo Wii sold very well, thanks to the media buzz around its motion-based wireless controller.
Almost twelve months on, the hype has disappeared and although the Wii is still an attractive purchase it lacks the variety and quality of games of the competition.
The Wii has an excellent online offering, allowing people to access news, weather reports and even download retro Nintendo games.
It’s more like a toy than a console – but still plenty of fun for younger players.