"Industry sources and leaked internal documents suggest that Sony is considering pricing the new device at about £300, more than £100 cheaper than the starting cost of its predecessor," says The Times. The PlayStation 3 launched in the UK for £425.
£300 works out at approximately $464, though hardware in the US is traditionally priced a bit cheaper than in the UK.
But The Times' report also says Sony won't be announcing the price or the date of the PlayStation 4 at its PlayStation Meeting 2013 event in New York on Wednesday, and will instead be waiting for Microsoft to show its hardware before coming to a final decision.
"Because company executives want to see Microsoft's updated Xbox before PS4's release, Sony is unlikely to reveal exact prices or dates for the new PlayStation at next week's event," says the newspaper.
The Times also says Sony's PlayStation 4 will be able to support the "new generation of ultra-high definition [4K] televisions" alongside earlier rumours such as cloud streaming and a touchscreen controller.
Sony's PlayStation Meeting will take place in New York on February 20 at 18:00 EST/15:00 PST/23:00 GMT. GameSpot will be in attendance and broadcasting the event live.
For the latest PlayStation 4 information, check out GameSpot's previous coverage.