Microsoft expects Sony to release a slim version of the PlayStation 5 Slim (PS5 Slim) later this year at a price of $399.99, reports The Verge. This information was revealed in documents filed by Microsoft as part of a case in which the US Federal Trade Commission (FTC) is trying to stop the corporation from taking over Activision Blizzard.

The documents state, “PlayStation likewise sells a less expensive Digital Edition for $399.99, and is expected to release a PlayStation 5 Slim later this year at the same reduced price point.” This suggests that Microsoft believes that Sony plans to introduce a more compact and cost-effective version of its popular game console.

Last year, Insider Gaming reported that Sony was developing a PS5 with a removable disk drive, the release of which is scheduled for September 2023. According to rumors, the console could be sold either as a standalone device without a disc drive, or as part of a bundle. This suggests that Sony may consider making the PS5 Slim a standard model, giving consumers the choice and option to add a disc drive later if needed.

In addition to the PS5 Slim, the Microsoft documents also mention a portable PlayStation device: “Sony is also anticipated to release a handheld version of PlayStation 5 later this year for under $300.” However, this statement is not entirely accurate. Sony really plans to release a Project Q portable device later this year, but it will run games streaming over Wi-Fi from the PS5 console rather than being a standalone handheld version of the console.

It’s important to note that Microsoft’s predictions about Sony’s future PlayStation hardware have not been confirmed by third-party sources.