Sony Computer Entertainment America have announced that they are slashing the price of the PlayStation 2 in America, ahead of expected Xbox and Gamecube price cuts which are widely rumoured to be announced at E3 later this month.

The price cut will see the PS2 retailing at $199 in America, that's about 135, although there appears to be no plans for a European price cut, after the price reductions which we saw last year.

PSone is also getting a price cut, from $99 down to $49. Gamers in Europe will also get a price cut for the PSone, seeing a new price of 89 euros, or about 50 in the UK.

Sony are also expected to announce a wholesale price cut of the PS2 in Japan later this summer, although no price has been confirmed as yet.

American Xbox and Gamecube price cuts are highly expected to be announced at the E3 expo which takes place from May 22nd, and as soon as we know the details, we'll let you know.