Sony has dropped the price of the 60GB PlayStation 3 to GBP 349 and introduced an "entry level" 40GB model to retail at GBP 299.
The repositioned prices will come into effect on October 10, with the new 60GB "value pack" including two first-party games for the GBP 349 asking price, along with a single controller.
It takes the place of the current Sony GBP 425 bundle, which included the console, two first-party games and an extra Sixaxis controller.
At the lower price point is the new 40GB model which only features two USB ports rather than four, and loses the multi-memory card slot and backwards compatibility with the PlayStation 2 back catalogue.
Sony says that it has introduced the two new offerings following "feedback from thousands of existing PS3 owners as well as research into future potential PS3 owners."
"As we approach our first PlayStation Christmas, it is satisfying to be able to offer UK consumers the choice of two PlayStation 3 packages both now representing remarkable value," commented Ray Maguire, MD of SCEUK.
"We have a brand new 40 GB machine that represents an excellent entry point into the world of high definition games and movies, and we have the fully featured 60GB machine being offered with two next-generation gaming experiences at a highly competitive price."
David Reeves, president of Sony Computer Entertainment Europe added: "The introduction of the new PS3 has been the result of extensive research into the entertainment needs and preferences of the next-generation PS3 owners."
A full interview with Ray Maguire, where he discusses the new price points in detail, dismisses any comparisons with Microsoft's Xbox 360 pricing, and the problems of early adoption, can be read on GamesIndustry.biz on Monday.