PS2 £139 from Oct 1st

Sony is to make the first move in the console price war this Christmas, slashing the cost of its PS2 console by £30 to £139 from October 1st.

The limited edition silver model will be priced at £149, meanwhile, and several bundle options are expected over the coming weeks, including a limited edition Prince Of Persia pack, an Eye Toy/Eye Toy Groove pack and possibly a GTA Vice City/Pro Evolution Soccer 2 pack.

Meanwhile, GameCube is expected to drop to just £79.99 within the next few weeks (as well as a mooted Mario Kart bundle at £99).

Microsoft, meanwhile, has said it will hold firm with its £129.99 price point for now, and is opting for value bundles instead. Its Halo/Midtown Madness 3 bundle at £149.99 was announced at last week's X03, but further three and four game packs are also on the cards, featuring 'top notch games'. With Sony's new price point, it will be interesting to see if Microsoft will keep faith with its pricing policy.