In a bid to improve lagging sales, Sony Computer Entertainment is set to introduce a new entry-level PlayStation 3 model that will sell it for $399 this holiday season, according to Ars Technica. In addition, the game console lineup that Sony plans to offer this holiday season includes PlayStation 3 80GB for $499, a PlayStation 2 for $99 and will bundle the upcoming Spider-Man 3 Blu-ray movie pack in with at least the most expensive PlayStation 3 version.

Although the death of the 60GB Sony PlayStation 3 has led to intense price cut rumors for the 80GB model before, Ars claims that its mole has a proven track record, with two Xbox 360-related reports that got confirmed in the past.

Sales of Sony's PlayStation 3 have been much slower compared to Microsoft's Xbox 360 and Nintendo's Wii, mostly because of the high price-point and lack of exclusive titles. But sales have reportedly been slowly picking up since Sony started slashing the console's price and offering bundled packs. At $399 Sony's PlayStation 3 would still be a bit more expensive compared to Microsoft Xbox 360 premium package, however, the built-in Blu-ray disc player is well worth the extra bucks.