Reports are coming in from an Italian gaming news site that Sony are to offer the much-rumoured and still as yet unconfirmed 40GB PS3 in Italy for 399 euros.

Although the Italian gaming market is not normally something we would report on, obviously this indicates that the 40GB model does exist, and the UK will get the entry-level model too, although pricing is still up for debate.

The euro price-tag of the 40GB console, reported to launch on 10th October in Italy, converts to about £277, which will no doubt fuel speculation that the machine could sell here for £275, rather than the rumoured £299.

A "starter pack" is said to also be on offer in Italy which includes two games and an extra pad for 499 euros.

The last official comment from Sony put the cut-price PS3 news as just rumour and speculation, in an almost word for word denial the company made about the PSP Slim - just before launching the PSP Slim and Lite.