Due to the V.A.T. rise which hits in the new year, MCV reports that retailers may be forced to charge more for videogames and consoles in store in 2011.

With V.A.T. at 20 per cent, the impact on retailers across Britain looks likely to effect profits and they'll be faced with some tough decisions on whether to soften the blow with an increase on videogames as well as other products, or take it on the chin.

In recent years, supermarkets have competed heavily in this particular area and the likes of ASDA and Tesco have become great places to buy games. But with the V.A.T. rise looming, MCV says that distributors have recommended that retailers raise their prices.

"The price of a 160GB PS3 could jump from £249.99 to £255, with the 320GB model climbing from £284.99 to £291. It’s likely that many games will also see around £1 added to their price, " reads the report.

Source - MCV