Sony is expected to announce the PlayStation 4 at an event in New York later this month and rumours about the price of the console are already circulating in Japan.
The PlayStation 4 will retail at a price "expected to exceed 40,000 yen", according to rumours in the Japanese newspaper, Asahi Shimbun.
That price converts to around €320 but Sony is likely to price the PS4 higher than that.
Threats from Microsoft's new Xbox - also expected to launch this year - as well as other gaming platforms such as tablets and smartphones are likely to encourage Sony to go for the lowest launch price it can.
Asahi reported that Sony "will reveal it’s new game system, PlayStation 4, which will release within the year. This is the first new model since PS3 was released in 2006, and it’s expected that there will be a rush to meet year-end sales demands between Japan and America. The price is expected to exceed 40,000 yen."
Sony is holding a PlayStation event in New York on February 20, at which it is widely expected to unveil the new console. Though little is known about it, rumours have suggested that it will include a 3.2GHz quad-core processor and 2GB RAM. It is likely to launch before the end of the year.
Meanwhile, Sony's main console rival, Microsoft, is expected to launch a new console of its own this year. The next-generation Xbox, tentatively described as the "Xbox 720", is likely to be announced some time in the next few months.
Rumours suggest that the new Xbox, which replaces the Xbox 360, will have a Blu-ray drive, a voice control system and will require an always-on internet connection, a feature that could block second-hand games.