Kmart confirms Sony PS3 rumours?

US retail chain Kmart has confirmed recent speculation that Sony will cut the price of its PS3 console and also introduce a new model, according to reports.

A banner advert currently running on the retailer's online portal says: "The rumours are a reality. New low price and a new exciting PlayStation 3."

However, there is no additional information available when users click through the advert as it simply directs them to existing PS3 offers.

This move follows fervent debate over the past six weeks about when Sony will decrease the price of its flagship console, with Tecmo Koei recently indicating that it "would welcome" a reduction in the price.

Yesterday, retail chain Asda cut the cost of its 80GB PS3 bundle to £250, including the choice of two games from a selection of six.

Alongside the speculation, there have also been rumours that Sony is preparing to launch a slimmed down version of the PS3. This includes a report last month that the company had contracted two Taiwan-based manufacturers to produce the product.

It is widely expected that Sony will clarify one or both of these rumours during a presentation to be held at 6pm today at the Gamescom conference in Cologne, Germany.

Microsoft is also predicted to confirm its new console pricing at the event, including an increase to the Arcade Xbox 360 price and the phasing out of the Xbox 360 Pro.