It looks as if those reports suggesting a new, entry-level 40GB PlayStation 3 might just be true.

An electronic manufacturing news source has revealed that Sony has turned to Taiwanese manufacturer FoxConn to make the rumoured lower-specced version.

Although it appears the 80GB model will continue to be made by ASUSTeK, the manufacturer for the new rumoured 40GB model will be the same company that produces Sony's PS2s.

Previous industry speculation had stated that not only will the 80GB model get a price cut, to the current price for the 60GB model, but that an entirely new "beginner" version will be introduced.

It has been suggested that a few, more minor features, such as the console's USB ports or backwards compatibility might be lost in order to let Sony offer the model more cheaply.

The current rumoured price for the 40GB PS3 in the States is $399, which directly converted to sterling would be £200. It's unlikely the UK would see a model that cheap - but a £300 price point pitching it up against the Xbox 360 Elite is not out of the question.

Timescales touted for the launch of the new model are either this week at the Tokyo Game Show, or early next week in order to "spoil" the high profile Halo 3 launch for Microsoft's rival Xbox 360.