Sony cuts back on NGP power to compete?

Reports are coming in that Sony are cutting back on the specs on their next handheld, codenamed Next Generation Portable, in order to keep pricing competitive with Nintendo’s 3DS.

IndustryGamers picked up on a report from French site 01net (the very same site to out both NGP and Project Cafe details) that said cuts were being made to the base model of the NGP. Apparently, the 512MB of RAM will be halved to 256MB, while the 16MB of internal flash memory is also gone, relying on external memory instead.

The 128MB graphics capability remains, and it’s quite possible that the larger, 3G-enabled version of the system will keep all these features.

Given the credibility of the source, we’d say this is a near-certainty. E3 should be the place to confirm. Are you disappointed about the cuts?