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RRP in the UK is not the same as the actual selling price at most outlets. This model isn't aimed at being cheaper, its aimed as a relaunch. Essentially they will be making more profit even if sales remain stagnent. I assume this is UK only because they're using the market as a test.

Its ridiculous that it doesn't come with more internal memory, no one is gonna be persuaded by 1GB. I know they still want people to buy the propriety memory cards but 8GB would easily be filled up with 1 or 2 months worth of PS+ content alone. Without the additional colours (black is the one available currently) there seems no point in adopting this Vita over the original.