The Sony PlayStation 3 clearly isn't selling as well as its creators would have hoped, this despite hardware changes, Blu-ray movies and price cuts. So what now to stifle the progress of the opposition? Release another version of the PlayStation 2, that's what.

Computer Active magazine reports today that Sony is reportedly setting itself up to launch a new, smaller version of the ageing console at a budget price that will help combat sales of the Nintendo Wii. Built with the power adapter inside the hardware, it is expected to retail for $99 USD.

Having sold around 120 million units, the PS2 is the biggest selling games console of all time, and with 160 or so new games planned for release in the coming months, it looks to just keep on chugging along.

Obviously it'll add a few much-needed pennies into the Sony Computer Entertainment coffers, but as for this new plan's effects on the Wii and Microsoft Xbox 360, we're not so sure it'll make much of a difference.