A PR for the largest game seller in the UK (Game Group) has said this:

On the back of ongoing rumours, CVG has been told that Sony has informed retailers of a looming price drop for both the PS3 and PSP "soon", but is yet to specify an exact date.

A major UK high street retailer told us this morning that they've received word from Sony regarding PSP and PS3 price drops "definitely coming soon", but that it was yet to confirm when or by how much.

"It's been on the cards for a while," they said, "but manufacturers are not in the habit of giving exact dates so as not to effect sales".

Game and GameStation's PR man declined to comment on the rumours, saying only: "Price drops are always welcome, but can't I give you any specifics."

Sony refused to comment on "rumour and speculation".

The word on the street is that the 80GB PS3 will drop in US from $399 to $300 next week. Probably around the time of GDC.

Stay tuned and we'll keep you updated.

(Thanks to CVG) http://www.computerandvideogames.com/article.php?id=211023

This is great news to people wanting a PS3 or PSP. I'm getting my own ps3 (have to share atm) as soon as it goes down in price here in the UK. If its gonna drop in price in the UK, it will definitely drop in price in the US and other places.

doubt this is true. only because it mentions both psp and ps3. if it were one or the other it would be more plausible.... unless the drop is like 25 dollars each

would be huge to sales if it happens as soon as this articles says it will 399$-300$

this should hurt ps3 sales till then

im thinking the price cut will happen in the fall though

That would be strange cause with the strong Yen and weak Pound UK is the place where they lose the most money... are the willing to lose even more?

Great even if its just £30 each- seeing PSP at £99.99, and PS3 at £229.99

The word on the street is that the 80GB PS3 will drop in US from $399 to $300 next week. Probably around the time of GDC.

Word on the streets?haha come on...i dont believe it but this would be great cos UK is the biggest market in Europe...this would see some great sales and maybe from then on they would sell more then the Box in Europe!

HIGHLY doubt this