Online retailer Expansys has cut the price of Sony Ericsson's Xperia Play phone by almost half, from £499 to £289.
Other electronics retailers, such as Play and Amazon, are also offering the gaming phone for the much lower price than its RRP, at £299.
US carrier Verizon has also dragged the price of the Sony Ericsson Xperia Play from $199 to $99, with the same two-year contract.
The radical price-cuts indicate that the Xperia Play phone has failed attract the desired number of customers.
Based on Android 2.3 Gingerbread, the Xperia Play has a 1GHz processor along with Adreno GPU graphics processor, the combination that offers 60 frames per second for browsing and gaming, with little battery consumption.
It has a slide-out gaming control, which sports a digital D-pad, two analogue touch-pads, two shoulder buttons plus the four PlayStation icons, viz. circle, cross, triangle and square.
It comes with PlayStation certification that brings PlayStation content via the PlayStation Suite, but many have criticized it for failing to provide true integration with Sony's PlayStation.