MCV's reporting word from a "senior global publishing source" that both 360 and PS3 will see further price cuts this year.
The moves could be announced as soon as E3, says the piece.
The site's speculate that Nintendo may also drop the price of Wii this year. When contacted, Sony "laughed off" the story, while Nintendo said, "We currently have no plans to cut the price of Wii in the UK."
Sony dropped the price of PS3 at gamescom last year. MCV's saying the "likelihood" is that Sony will bring the console down to £200 at the entry level.
A cheaper 360 is expected to compliment the launch of Natal, now confirmed for October.