According to UK outfit MCV, Sony is set to introduce a new PS2 model at the beginning of next year for only $99, down from the current retail price of $129.

The new PS2 model is said to be more compact, sporting a built-in power supply, which will allow Sony to manufacture the console at a slightly more economically viable price.

$99 is one heck of a good deal. If true, I reckon Sony will be using the new price point to attract those who bought a 40GB PS3 and still want to play PS2 games.

New low-price ‘compact’ PS2 to arrive in 2008 [MCVUK]

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