Sony Computer Entertainment Europe has told GamesIndustry.biz that recent chatter about an entry level 40 GB PlayStation 3 is just "rumour and speculation".
Numerous websites and blogs have suggested that Sony is due to unveil a scaled-down console for around GBP 299 in the UK, with USB ports and backwards compatibility functions removed.
Although the US and Japan has seen PlayStation 3 price cuts this year, the console currently retails in the UK for GBP 425, complete with an extra controller and two first-party games.