Following an intense period of speculation, Sony has confirmed that it is to cut the price of its leading last-gen console PS2.

The machine will see €30 cut from its European retail price, meaning it will be available on the continent for just €99.99. North American gamers see a similar drop, with the new RRP becoming $99.99.

There’s no word yet on what the new UK price will be, but expect the machine to drop well below £100. [UPDATE - the UK price is staying the same]

All prices come into effect tomorrow.

“PS2 transformed the games and entertainment industry, by reaching a mass market audience through innovative games, including social games such as EyeToy®, SingStar® and Buzz!TM and by the integration of the DVD player, which helped establish DVD as the format of choice throughout the world,” SCEE president and CEO David Reeves stated.

“We are now into PS2’s tenth year and consumer demand remains strong throughout much of our region. This RRP revision will help to ensure that PS2 remains a key part of the entertainment market place for some time to come. We are very excited about the future of PS2 and will continue to grow the game library this year, meaning that new and existing owners have plenty to be excited about.”

Many industry speculators had pointed to Sony announcing a PS3 price drop today or tomorrow following the ending of its current financial year. However, with the current global economic crisis forcing many Eastern firms to up their prices, as was seen with Nintendo’s increase of the UK Wii trade price, such a move has become increasingly unlikely.