Paddy Power has announced that all bets made on the PS3 price reduction are off following Sony’s decision to keep the price the same.

Apologising, Paddy Power has agreed not only to refund bets but also give disappointed punters a free bet of the same value they made.

The problem arose from the fact that there was no price cut and that Paddy Power hadn’t made provision for that. There was a betting option that the price would be reduced between £400 and £425 but not simply stay the same, therefore the bet is null and void.

"We can only apologise and maybe we should have made it clearer in the press release," said Sharon McHugh, spokesperson for Paddy Power.

"All bets will be void, we'll refund the money and people will get a free Novelty bet for the same amount."