Sony's saying nothing, but online reports suggests the consumer electronics giant is readying a further incarnation of the PS2 that's set to ship in the States next year for under $100.

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According to a report published by games industry trade paper MCV, the third-generation PS2 will be more compact than the current 'slim' model and see the power brick moved inside the casing.

It claimed the machine will retail Stateside for $99 - the current version costs $129 - and over here for around £75 - 20 quid less than today's £95 RRP.

It's suggested the new PS2 won't appear until 2008. If so, Sony clearly doesn't want it to hinder PS3 sales this coming Christmas. But Sony last week said it expects to sell around 12m more PS2 worldwide in the five months to the end of March 2008, and the new, cheaper model could well be how it plans to meet that target.

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