Sony has made a surprise price cut to the PlayStation 3, with the cost of the 160GB model dropping to below £120, as a new sub-£100 PSP is launched to compete with the 3DS.

Gamescom has seen many price cut announcements in its time, thanks to its close proximity to the beginning of the Christmas rush. But this new one for the PlayStation 3 has come largely out of the blue, with Sony Europe confirming that the 160GB model will now have an RRP of £199, down by around a quarter on its previous price.
Already has translated this to mean £192, with the 320GB hard drive version dropping accordingly to £215. Other retailers will have likely followed suite by the time you read this.
At the same time Sony has introduced the PSP E-1000, a new low budget version of the original PlayStation Portable meant as an entry level device for kids and single-player gamers. Why single-players? Because the E-1000 has no Wi-Fi option, so you can only play multiplayer with those game that have an online option (which means you can also still download games via the PlayStation Store).
No UK price has been announced for the new console, but the European price of €99.99 works out as £87.50. At the same time a new range of PSP Essentials titles, including new games such as Invizimals: The Lost Tribe, EyePet Adventures, will be launched at just €9.99 (£8.70).
If anything the new PSP is even more surprising than the PlayStation 3 price cut and you could read it as evidence that Sony has no intention of reducing the price of the PSVita, and is instead introducing the new lower-priced PSP as a more direct rival to the 3DS.
The final bit of retail news was that the PlayStation-branded 3DTV which Sony first announced at E3 is coming to Europe. Meant as a low cost option for gamers the 24” telly comes with two glasses, which not only allow you to view games in 3D but also offers a multiplayer option where two players see two completely different images – removing the need for split screen displays.
The new 3DTV will be out this autumn and will be priced at £499 in the UK. So you better hope you’ve been good this year, because that’s an awful lot for Father Christmas’ list…