Sony has scuppered rumours that it is going to cut the price of the PS3 in Europe and launched a better value bundle instead.

The company also has no intention of releasing an 80GB version of the console over here, despite plans to launch it in the US next month.

Sony has come under fire for the wallet-breaking price of the PS3, but believes the new PS3 Starter Pack will tempt more customers.

At this week's E3 2007 games show, Sony announced that the Starter Pack will comprise of the console, two first-party games and a pair of Sisaxis wireless controllers. The games to choose from include: Motorstorm, Genji: Days of the Blade, Resistance: Fall of Man, Formula One Championship Edition and Ridge Racer 7. The games and extra controller are valued at £115 - more than double the £50 price reduction the Americans got.

In value terms the PS3 Starter kit more than makes up for up for the price cut in the US but does not address the general gripe that the £425 console is too expensive in the first place.

The Starter Kit will be available in Europe from 18 July and will roll out across all territories from 1 August.